ITALY Law and Practice Contributed by: Paolo Balboni, Luca Bolognini, Giulio Monga and Carmine Antonio Perri, ICT Legal Consulting
ICT Legal Consulting Via Borgonuovo 12 20121 Milan Italy
Tel: +39 028 424 7194 Fax: +39 027 0051 2101 Email: info@ictlc.com Web: www.ictlc.com
1. Market Trends 1.1 Technology M&A Market
Italia, highlight ongoing consolidation efforts, espe- cially in telecommunications and digital infrastruc- ture. • Sectoral focus – software, fintech, cybersecurity, and digital platforms have remained the most attractive sectors, with both domestic and interna- tional buyers active. There has also been notable growth in iGaming M&A, driven by Italy’s recent overhaul of its online gambling licensing regime. • Private equity resurgence – private equity (PE) firms accounted for a significant share of transac- tions, focusing on growth-oriented platforms and scalable technology businesses. 2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company 2.1 Establishing a New Company Italy offers a straightforward and supportive environ- ment for new company formation. In fact, new start- up companies are typically incorporated domestically rather than in another jurisdiction, particularly due to the availability of incentives for innovative start-ups under the so-called “Start-up Innovative” regime (established by Decree-Law No 179/2012 and its subsequent amendments). Entrepreneurs are gener- ally advised to incorporate in Italy to benefit from tax breaks, simplified corporate governance, and access to public funding. The Start-up Innovative regime consists of capital companies, which may also be established in co-
Over the past 12 months, the technology M&A market in Italy has experienced the consolidation of a trend – started in 2024 – of gradual rebound following a peri- od of slowdown in 2023. While transaction volumes have increased moderately, valuations have remained more conservative, reflecting the ongoing impact of higher interest rates and selective investor sentiment. Compared with the global market, Italy’s activity has been slightly below the international pace in terms of deal size but aligned in terms of the number of trans- actions, particularly within the mid-market segment. The most active areas have included software, fintech, cybersecurity, and digital infrastructure, with strategic acquirers continuing to drive consolidation efforts. Pri- vate equity investors have also shown renewed appe- tite as financing conditions begin to ease. 1.2 Key Trends Over the past 12 months, several key trends have emerged in the Italian technology M&A market: • Rebound in deal activity – the market saw the con- solidation of a trend started in 2024, with moderate growth in both transaction volumes and values, particularly in mid-market deals. • Selective valuations amid cautious optimism – despite the increase in activity, pricing has remained disciplined due to higher interest rates and broader macroeconomic uncertainty. • Strategic consolidation – large-scale transactions, such as the Swisscom acquisition of Vodafone
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