Pignataro's ION draws scrutiny from Italy's central bank - sources
25/01/2024 16:12
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ION has acquired prominent role in Italy's financial
sector
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Central bank looking into sprawling corporate structure
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ION's growth fuelled by debt
By Valentina Za and Giuseppe Fonte
ROME, Jan 25 (Reuters) - A string of acquisitions by
Andrea Pignataro's fintech firm ION in Italy's financial sector
has prompted the central bank to study in detail the group's
complex ownership structure, two sources with knowledge of the
matter told Reuters on Thursday.
The move highlights the growing scrutiny drawn by a group
that has invested 6 billion euros ($6.5 billion) in Italy in
recent years, gaining a prominent role in the financial sector
as a supplier of key services, and control of sensitive data.
The Bank of Italy declined to comment. Representatives for
ION were not immediately available to comment.
Supervisory powers over the country's financial sector also
allow the Bank of Italy to look into companies that own banking
and financial businesses, and the sources said the central bank
has delved into ION's intricate corporate structure.
Its role as a supplier of services essential to the
financial industry, such as trading and clearing, came into
prominence a year ago when the group suffered a ransomware
attack that left scores of brokers unable to process derivatives
trades.
The Bank of Italy's focus on ION relates also to the huge
amount of sensitive financial data the group manages following
its acquisitions, the sources said.
While according to one of the people the investigation has
been ongoing for some time, the other said requests to the group
to disclose information had intensified in the last few months
of 2023.
Hailing from the northern town of Bologna, Pignataro made
his fortune abroad building a group with a corporate
architecture spanning several countries which provides financial
software systems and IT infrastructure, as well as data and
analytics.
In Pignataro's first major foray into his native Italy, ION
in 2021 acquired Cedacri, Italy's main provider of outsourced IT
services to banks. Later that year, ION bought credit data group
Cerved.
It also holds stakes in banks Monte dei Paschi di Siena
BMPS.MI , illimity ILTY.MI and Cassa di Risparmio di
Volterra.
This month ION secured a green light from Italy's government
to acquire real estate and bad loan manager Prelios, after Rome
vetted the deal under legislation designed to protect assets of
strategic national relevance.
However, sources told Reuters Italy intends to launch a
further inquiry when ION pledges Prelios shares as collateral
against debt covering almost half of the 1.35 billion euro
acquisition.
ION is known in the industry for its aggressive use of
financing in its acquisition strategy.
A publicity-shy character with a knack for numbers,
Pignataro has not disclosed his longer-term plans. Critics say
ambitions to build a financial data and services conglomerate in
Italy are a bet on a mature market with few growth prospects.
($1 = 0.9212 euros)
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ION Group Corporate structure https://tmsnrt.rs/3Svp4Ai
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(Editing by Jan Harvey)
((giuseppe.fonte@thomsonreuters.com; +390680307711;))