Dec 16, 2014
– Expert System SpA, a leading developer of semantic software for the effective management of information and big data, (listed on the AIM Italy, organized and managed by Borsa Italiana SpA), and Elettronica SpA, an Electronic Warfare market leader, announce the establishment of a new company, CY4Gate Srl.
CY4Gate will use the software and knowledge developed by the Intelligence Division of Expert System, along with the Elettronica’s EW Systems and know-how, to offer products and services for cyber defense electronics and intelligence to government organizations operating in the Security field.
Lavinio Perotti, SVP Legal Affairs of Elettronica, has been appointed as President of CY4Gate, and Eugenio Santagata, SVP BD & Strategy of Elettronica, is the CEO. Andrea Melegari, COO Intelligence Division of Expert System, is the Chief Marketing & Innovation Officer. The new company will be based in Rome.
CY4Gate’s capital stock as of today is 0.3 million Euros in addition to a premium reserve of 2.8 million Euros, of which Expert System holds 30% and the remaining 70% belongs to Elettronica. It should be noted that starting from the fifth year after the company’s foundation date, put & call mechanisms in favor of Expert System and Elettronica respectively, are scheduled for the sale/purchase of Expert System’s dues by Elettronica. Should this option be pursued, the value of the shares will determined at fair market value.
CY4Gate has also signed a contract with Expert System worth 3 million Euros mainly related the activities of Value Added Reseller.
Given the Related Party nature of the counterpart and the fact that the agreement is considered a transaction of major importance according to the applicable regulations, it was therefore subject to approval by the Related Party Committee and the Board of Directors of Expert System. In accordance with art.13 of Borsa Italiana S.p.A’s Rules for the AIM Italia market – Mercato Alternativo del Capitale, the Information Document which describes the transaction shall be made available as required by current regulations. The document is accessible on the website www.expert.ai.
Andrea Melegari stated:
“The new company established with Elettronica is strategically important for Expert System’s international development plans. We are seeing more and more evidence of the effectiveness and usefulness of our software solutions for strategic information analysis. The Cyber Security market is one of the fastest growing markets. In 2014, it saw investments of more than $75 billion and is expected to reach $150 billion by 2019. Given this context, it is essential to focus on the right mix of “field proven” know-how and technological innovation. Elettronica and Expert System will make the most of these skills with CY4Gate, by offering a complete range of solutions which provide: an innovative, fast and structured analysis of “non-structured-data” streams , full protection of modern net-centric networks and their information, and active defense against all types of malware. ”
Eugenio Santagata, SVP BD & Strategy for Elettronica and CEO of CY4Gate, commented:
“CY4Gate innovatively integrates the use of the spectrum of military and security goals with the control of networks and their contents. Our advanced tools successfully deal with the increasing complexity of modern operational scenarios. The solutions offered by CY4Gate will supply data fusion, analysis and countermeasure capabilities to support defense electronics operators, intelligence and police forces. ”
Expert System, a leading semantic technology company listed on the AIM Italia market of Borsa Italiana, and developer of Cogito, a patented software which combines language and technology to enhance the ability to use non structured content. Expert System’s products and solutions, based on Cogito’s advanced analysis engine and a rich semantic network, go beyond traditional keyword approaches to offer a vast range of functions such as: semantic searches, text analytics, the development and management of taxonomies and ontologies, automatic categorization, the extraction of data and metadata, natural language processing. Key clients are: Eni, ING Direct, Telecom Italia, Ansa, Camera dei Deputati, Intesa Sanpaolo, Il Sole 24 ORE. Expert System has offices in Italy, Europe and the United States.
Elettronica, founded in 1951, is one of the European leaders in the production of Electronic Defence equipment (EW). The experience in the design and production of EW equipment and systems acquired in over 50 years guarantees reliable, effective solutions able to satisfy the changing needs of modern defence. Elettronica supplies all solutions, systems and products in the EW field: from interception capacity during law enforcement operations to surveillance of risk areas, to the self-protection of platforms in hostile zones, up to monitoring the electro-magnetic scenario. www.elettronica-elt-roma.com
The Company’s product line includes any EW aspect: from single stand-alone devices to integrated systems for naval, air and ground applications in service with the Armed Forces of 28 countries in 5 continents. In detail, Elettronica is specialised in the design, development and production of EW systems for search, interception, analysis, identification and localisation of electromagnetic emissions (ESM/ELINT); EW counter-measure systems (ECM); Radar Warning Receivers (RWR); integrated EW systems ESM/ECM.