Venture capital, LVenture-Digital Magics towards the merger for a new competitive player in Italy and Europe
Create a leading operator in the national market and of unique importance at European level in the venture capital sector. This is the objective of the operation in which the protagonists are involved LVenture GroupEarly Stage Venture Capital operator that invests in digital startups with high growth potential listed on the Euronext Milan market, and Digital Magics, certified Italian business incubator listed on the Euronext Growth Milan market. The Boards of Directors of the two companies have in fact mandated, respectively, the Chief Executive Officer of LVG Luigi Capello and the Executive Chairman of DM, Marco Gay to sign a non-binding term-sheet concerning the merger between the two companieswhich is expected to be accomplished through fusion per incorporation i.e. DM to LVG.
According to the preliminary agreements reached, subject to the implementation of corporate transactions functional to increasing LVG’s shareholders’ equity, it is envisaged that the business combination can be implemented on the basis of an exchange ratio based on a valuation of, respectively, DM and LV – in terms of contribution in the Combined Entity – included in the range of 61.5% – 38.5% / 66.5% – 33.5%.
The term-sheet outlines a structural hypothesis of the corporate governance structure of the Combined Entity aimed at reflecting the valorisation relationship, providing in particular that the current Executive Chairman of DM, Marco Gay, assumes the role of Executive Chairman and the current Chief Executive Officer of LVG, Luigi Capello, assumes the role of Chief Executive Officer. “We are pleased to announce the launch of this integration process, aimed at projecting LVenture Group into a new dimension, building up a critical mass and pooling skills, assets, financial resources and a portfolio that includes the best startups and Italian scale-up companies” commented Luigi Capello. The Executive Chairman of DM, Marco Gay echoes him: “In Digital Magics we have always been convinced that to grow we need to create a system. We have great challenges and opportunities to seize in an industry that is increasingly concretely demonstrates the ability to grow, create value and compete internationally”.
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