doValue has announced the start of exclusive negotiations for a strategic aggregation with Gardant, marking a turning point in its 2024-2026 business plan. This move, as reported by MF-Milano Finanza, is aimed not only at improving profitability and cash flows but also at consolidating doValue’s leadership position in the Italian NPL market.
The proposed combination, which includes a cash and stock transaction, aims to acquire 100 percent of Gardant. This transaction will enable doValue to further expand its reach in the sector, increasing the group’s cash generation and financial strength. The focus is now on refinancing the debt issued, with the goal of maintaining a net financial position to EBITDA ratio around 2 times by 2025.
Gardant stands out on the Italian scene for its comprehensive offering of credit management services, managing €40 billion in assets and using strategic partnerships and technological innovation to optimize portfolio management. Its DataGardant division, in particular, has pioneered data-driven solutions, positioning the company as a leader in the industry
The Benefits of Aggregation.
The integration with Gardant promises to accelerate the achievement of the goals of doValue’s new business plan, strengthening its position as an asset-light operator and broadening its customer base and service offering. This strategic move will not only strengthen doValue’s leadership but also generate value for shareholders by opening new frontiers in the NPL segment and beyond.
The 2024-2026 business plan of doValue, called “Unlocking new frontiers,” rests on a conservative foundation that reflects the challenges of the current market, focusing on technological innovation and cost efficiency. The company plans to focus on investment and transformation in 2024, projecting gross revenues between $480 million and $490 million and ex-Nri ebitda between $185 million and $195 million to 2026, with a cautious dividend policy in anticipation of deleveraging.
doValue ended 2023 with a mixed performance, highlighting the need to adapt to a volatile market environment. Despite a declining net income, the company remains focused on maintaining financial strength, with no dividend distributions planned for 2024 but a positive outlook for the coming years.
Blogger and Investment Management Advisor with focus on Distressed Assets & NPL. Massimo is Chief NPL & Fintech Editor at Credit Village Magazine.