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(Bloomberg) — Andrea Pignataro has quietly become one of the most important men in Italian finance, building a network of companies that control data, trade securities and help the European Central Bank manage the euro in an empire worth an estimated €25 billion ($27 billion).
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The reclusive dealmaker from Bologna expanded in his home country after pursuing a bold plan to combine his ION Group with Nasdaq Inc. in 2019, according to people familiar with his operations. The talks, which haven’t been previously reported, ended without an agreement because of concerns about whether the New York-based exchange and Pignataro’s operations would fit together. But the aborted proposal shows the scope of his ambitions.
Despite the growing influence of his business, which has sparked scrutiny from the Italian government, the 54-year-old remains very private. There are only a handful of published photos of him, and he has given only one in-depth interview, with a major Italian broadsheet a year ago. On his LinkedIn profile, there are no posts and no picture. Bocconi University in Milan lists him as an academic fellow on its website, but his faculty page contains no information aside from an email address.
He’s likely one of Italy’s richest men, but the private nature of his businesses and his complex debt structures make it hard to attach a value to his wealth. To report on Pignataro’s background, Bloomberg spoke to a dozen people who have direct knowledge of his business and asked not to be identified discussing private matters. A representative for ION declined to make Pignataro available for interview or comment on personal details. (Bloomberg LP, the parent company of Bloomberg News, competes with ION in providing financial software and data.)
The latest step in Pignataro’s Italian expansion took place last month, when he completed a €1.35 billion ($1.5 billion) deal to buy Prelios SpA, a company that manages more than €40 billion in assets including distressed loans.
The potential concentration of sensitive data in the hands of the self-made mogul led Prime Minister Giorgia Meloni’s administration to carry out an in-depth review of his group’s indebtedness, which amounts to more than $15 billion — including a complex web of private loans — according to people familiar with the matter who asked not to be identified because they weren’t authorized to speak publicly. The Italian government only cleared the deal after months of negotiations and imposing conditions on ION, none which have been made public, the people added.
A recent management exodus and a cyberattack last year added to Pignataro’s list of concerns, raising questions about whether his close-knit management style can handle the complexity of a group that’s grown to employ 13,000 people worldwide.
“Because of changing technologies and business models in finance, the industry’s strategic partners need to follow the same high standards of transparency, and Pignataro’s ION isn’t immune from that,” said Michele Costabile, director at Luiss University’s X.ITE Research Centre on Technology and Market Behavior. “We don’t need to know how many villas they own, but they must have proper governance and provide a clear picture of their assets and liabilities since they are deeply embodied in strictly supervised financial players.”
Through ION, Pignataro controls financial services firms Cedacri SpA and Cerved Group SpA. That means the group handles large amount of data on Italian borrowers and companies, as well as providing software for most lenders. He’s also bought stakes in Banca Monte dei Paschi di Siena SpA, Illimity Bank SpA and Cassa di Risparmio di Volterra.
After studying at Bologna University, Pignataro worked as a bond trader in London, where he later received a doctorate in math from London’s Imperial College. While working for Salomon Brothers, he helped lead a joint venture with Pisa-based software firm List Holdings, filings show. That business would eventually become ION Trading UK, the start of what is now ION Group.
While he also founded an investment firm with fellow traders after leaving Salomon, he was devoting his full attention to ION by the early 2000s. Over the next decade, the business — which makes a range of financial software to manage trading, regulatory compliance and treasury functions — grew at a fast pace.
With the backing of private equity firm Carlyle Group Inc., ION then went on an acquisition spree starting in 2016, which included equity-trading software firm Fidessa and financial-analysis platform Dealogic.
People who have worked with Pignataro say he is capable of delving into the tiniest technicalities of the businesses he owns. He’s also convinced some of the savviest investors on Wall Street to back his vision of merging different aspects of financial services and leveraging data. UBS Group AG has become his go-to investment bank, while HPS Investment Partners — founded by Goldman Sachs alumni — has provided about $3 billion in private loans.
In his only wide-ranging interview, he described himself as an entrepreneur as defined by Joseph Schumpeter — in other words, an innovator.
“I like learning, imagining, building, transforming and seeing opportunities where others only see hurdles,” Pignataro told Italian newspaper Il Sole 24 Ore in February 2023, adding that this takes time, dedication, research and passion. He finances research in several fields and invests in university education because he believes that’s a key factor to develop talent, according to people who know him.
Nasdaq Talks
After years focused on ION, Pignataro reached a crossroads in 2019 as he explored a combination with Nasdaq, the people said. According to the outlines of a proposed merger, ION could have become the largest shareholder in Nasdaq, but negotiations ended without an agreement between the two parties, they said. ION said it doesn’t comment on “rumors or speculation” regarding M&A transactions. Nasdaq declined to comment.
Following the end of the talks and another failed bid for a financial services software business in Switzerland, he opted to consolidate control of ION, taking out bank loans to buy out Carlyle, which had a stake in a key unit of the conglomerate, and then refinancing them with private debt from HPS.
Pignataro then started investing in an array of Italian finance companies from data intelligence to credit-management services. His discreet empire-building was shaken by 2023 events that thrust him into the spotlight.
A cyberattack on ION’s derivatives-trading business in January that year affected dozens of clients in the US and Europe and forced some to process trades manually. While fixes were quickly implemented, the cyberattack underscored the critical role his group started to play in the smooth functioning of financial markets. That prompted authorities to take a deeper look at his financial structure.
In July 2023, the Italian government’s so-called golden power committee — which can impose stringent conditions on companies considered strategic assets — condemned actions taken by Cedacri, a software provider for the banking sector.
The unit was reprimanded for rapidly increasing debt “with the only aim of distributing large dividends to its shareholders,” according to a court ruling published in May this year that upheld the government’s decision. The move will effectively prevent Cedacri from borrowing money to help service debt obligations of ION holding companies in the future, and other Italian units may be subject to the same restrictions.
There have also been signs of internal tension. Employees at Cerved — a financial-data and debt-collection company acquired in 2021 — complained about intense pressure and staff being assigned to new roles that were effectively demotions, according to statements by union representatives earlier this year after talks with management. Some ION units also didn’t pay bonuses on time this year, the people said. ION declined to comment.
In recent years, at least four senior executives and numerous managers from acquired companies have left, the people said. ION’s six business units have independent boards and management, but Pignataro continues to take a hands-on role across the group despite the growing complexity of the business, they added.
If his past is any guide, he’s likely to keep expanding. Throughout his career, he’s only been on the buy side. After more than 30 acquisitions over two decades, ION has not sold a single entity.
“Pignataro is one of the cleverest businessmen in Europe,” said Luiss University’s Costabile. “The fact he’s reserved and discreet makes it all the better for someone in his position.”
–With assistance from Katherine Doherty.
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