Private equity

Nextalia sells Diagram Group to Cdp Equity and Trilantic Europe

As a result of the deal, the shareholder structure owes the two acquiring funds 83% and Bf agricola 15%. Management also reinvested in the deal

by R.Fi.

23 December 2024

3' min read

Key points

How the shareholding changes
The company sold
Nextalia's investment

3' min read

First exit for the Nextalia Private Equity fund. The Sgr announced that it has signed a binding agreement to sell its entire stake in Diagram Group to a consortium composed of Cdp Equity and Trilantic Europe. The Transaction foresees, among other things, the reinvestment of BF Agricola, a subsidiary of B.F., and Diagram's top management, led by CEO Roberto Mancini, alongside the new shareholders.

"We are proud of the path Diagram has taken under the guidance of Nextalia. This transaction, the first exit from our flagship Nextalia Private Equity fund, is a concrete testimony to our ability to create value through solid industrial strategies and Nextalia's active support of development. In just two years, Diagram has consolidated a leading position in the agritech market, laying a solid foundation for sustainable future growth,' comments Francesco Canzonieri, CEO of Nextalia.

How the shareholding changes

Cdp Equity and Trilantic Europe each acquired a 41.6% stake in the company - for a total of 83% of the share capital - from the investment platform Nextalia, which had held Diagram since 2022. Bf Agricola, a Bf Group company active in the agro-industrial sectors, retained a 15% stake in the company in a reinvestment transaction, compared to its initial 20% shareholding.

Nextalia's investment

Nextalia acquired IBF Servizi in December 2022. Subsequently, the company completed the acquisitions of Abaco in October 2023, Agriconsulting in June 2024 and Netsens in July 2024.

Today, the company has a portfolio of customers covering over 2 million hectares in Italy and over 500,000 abroad, with more than 350 employees and over 450 collaborators in various locations in Italy and the UK.

The current financial year will end with turnover of about EUR 80 million and a gross operating margin (Ebitda) of about EUR 27 million. Estimates for the coming year indicate revenues of over EUR 90 million and an Ebitda of over EUR 36 million.

The company sold

Diagram is a leader in precision farming services, technology solutions and software applications for the agricultural sector. The group cross-services a diverse set of customers - including farmers, agribusinesses, banks, insurance companies and public authorities with proprietary technology solutions. Diagram, with the support of Nextalia, has completed a path of acquisitions, aimed at expanding its portfolio of skills, technologies and markets. Under the direction of top management, the group has experienced exponential growth, the release states.

"This operation," emphasises Federico Vecchioni, CEO of BF, "demonstrates the BF Group's commitment to promoting innovative and sustainable solutions for the agro-industrial sector. Thanks to the partnership with Nextalia, of which we are proud shareholders, Diagram has become a European champion; our reinvestment reflects our confidence in the project and in the Group's ability to continue to innovate".

Roberto Mancini, CEO of Diagram, added: 'I would like to thank the Nextalia team for their invaluable support and backing, in these two years we have quickly built a European leader in its target market, laying the foundations for a solid and concrete growth path.

The completion of the Transaction is subject to conditions precedent in line with market practice for this type of transaction.

CDP Equity and Trilantic Europe were assisted by Vitale, Pedersoli Gattai, EY, Bain & Company, White & Case, Foglia & Partners and Di Tanno Associati. Nextalia and Diagram were assisted by Intesa Sanpaolo (through the Corporate Finance Mid Cap Department of the IMI Corporate & Investment Banking Division), Deloitte, Legance, Latham & Watkins, Tremonti Romagnoli Piccardi e Associati and Orrick, Herrington & Sutcliffe for UK matters, and ERM. BF group was assisted by Esiodo s.t.a.p.a.