Investcorp buys majority stake in Italian cybersecurity company HWG

HWG serves businesses across sectors including finance, fashion, automotive, telecommunications and manufacturing

Investcorp on Tuesday said investment in Italy's cybersecurity firm HWG is the first investment from Investcorp Technology Partners’ Fund V. Investcorp

Investcorp, the alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, bought a majority stake in Italian cybersecurity company HWG as the Bahrain-based firm continues to expand its portfolio globally.

Investcorp Technology Partners (ITP), which focuses on technology companies based in Europe, acquired the stake in HWG, Investcorp said in a statement on Tuesday.

It did not disclose the value or size of the deal.

HWG co-founder and chief executive, Enrico Orlandi, and its other co-founders, Claudia Rangogni, Andrea Boni and Andrea Pomari, will continue to lead the company after retaining their ownership alongside Investcorp.

“HWG offers a distinct platform in an important and growing sector, and has proven its cybersecurity capabilities as a leading independent provider in the Italian market,” Gilbert Kamieniecky, head of Investcorp’s technology private equity business, said.

Cybersecurity is gaining importance for many businesses due to the accelerated adoption of technology during the coronavirus pandemic.

The number of ransomware attacks surged by 151 per cent worldwide in the first half of 2021 as cyber criminals sought to tap into a growing global digital economy and exploit people and businesses seeking to digitise their operations, according to the World Economic Forum.

Overall, cyber criminal activities were projected to have inflicted damages worth about $6 trillion globally in 2021, according to research company Cybersecurity Ventures.

The investment in HWG is the first by ITP's Fund V and marks the third cybersecurity transaction the unit has been involved in during the past two years. ITP previously acquired German cybersecurity provider Avira in 2020, which was subsequently sold to NortonLifeLock, according to Investcorp.

ITP invests primarily in lower mid-market technology companies with a specific focus on the data analytics, IT security and FinTech sectors. Its other investments include payments platform Rtekk, human resources software provider softgarden, Calligo, a proprietary cloud solution company and Impero, a provider of online student safety and classroom and network management software.

HWG, which also has offices in Lithuania's capital Vilnius, Dubai and Singapore, serves businesses in a number of sectors including finance, fashion, automotive, telecommunications and manufacturing.

Investcorp had $40.4 billion in total assets under management as of December 31, including assets managed by third-party managers. The company aims to more than double its assets under management to $100bn in seven years' time, from $37.6bn as of June, ‏‏‏‏its executive chairman Mohammed Alardhi told Bloomberg in September.