Buongiorno Joins with Francisco Partners for B2B Services

Mobile services company Buongiorno has announced an agreement with Francisco Partners that will see the two companys B2B services spun out into a new company. The deal is worth around €110m (£95m).

The new company will be independently managed and majority controlled by technology focused global private equity firm Francisco Partners, with Buongiorno retaining a 40 per cent stake. The company will leverage on the technological and managerial experience, multi-geographical approach, and operator relationships of Buongiorno, as well as on the proven track record of Francisco Partners of successful development-oriented investments in the technology industry, say the companies.

The deal sees the company employ Francisco Partners end-to-end services in mobile marketing, loyalty, advertising, messaging and applications.

“We took a first step in the direction of specialising our B2C and B2B approach at the beginning of 2010, when we moved to a divisional organisation,” says Andrea Casalini, CEO of Buongiorno. “Today we take a further, bolder step: creating and managing the two separate entities will align the organisations more effectively to achieve the ambitious growth objectives each has been set. It will also give the best professional opportunity in both areas of our management team and staff. Moreover the deal with a leading technology investor like Francisco Partners, at multiples which are materially higher than those currently on the Milan Stock Exchange, is also a first step in unlocking the value which Buongiorno has created during the years for its shareholders.”

“Francisco Partners has been impressed by the new companys track record of strong growth, product innovation and customer satisfaction,” says Matt Spetzler, principal at Francisco Partners. “We are excited to partner with Buongiorno and the new companys management team to capitalise on its successful track record to date and to invest behind them to become the leader in the mobile marketing, loyalty/CRM and advertising markets.”