Milan-based wealth-management software firm Objectway has delayed the launch of its sale process until next year, three sources familiar with the situation told Mergermarket.

Several private equity firms have been approached by sellside advisor Houlihan Lokey in recent months with the promise of an autumn and then a December auction launch, one of the sources said. However, due to market volatility, the decision was made to postpone the process until next year, this source said.

Management is preparing a deal with an expected window in the first half of 2025, another of the sources said.

Earlier this year, the company had explored inviting a select group of investors to bid for a minority stake in a competitive auction, via Houlihan Lokey, as reported by Mergermarket in April.

Later in the year, it was reported by Mergermarket that Objectway was seeking a new investor after exploratory merger talks broke down.

Objectway generates annual revenues of around EUR 100m and an EBITDA of approximately EUR 20m, as reported.

The company’s management intends to launch a competitive search for an investor in the new year, once the company’s year-end accounts have been finalized, according to the first source. This move could provide a clearer picture of the company’s valuation ahead of the new auction, the source added.

The new auction may not be limited to a minority stake, the source also said.

Founded in 1990 by Luigi Marciano, Objectway develops wealth and investment management software solutions for the financial services industry in Europe. The bulk of its client base consists of Italian mid-market banks and banking consortia like UBI Banca, Fineco, Banca Sella, Veneto Banca, Carige, Banca Profilo, and Cedacri, according to its website.

Marciano holds a 92% stake in the company, while the rest is owned by small shareholders, as reported.

Confirming that the new auction could involve the sale of a majority stake in Objectway, a third source said Marciano is insisting on retaining a minority stake and demanding a high valuation.

The source also highlighted the software sector’s resilience to economic downturns, explaining that Objectway’s premium valuation aspirations are not entirely unreasonable. The entrepreneur is particularly focused on maintaining governance control, even with a minority stake, the source added.

A flurry of deals in the industry could also help the deal, the source said, noting that the sale of Lutech, the Italian software group, expected in the M&A pipeline next year, could drive the whole sector.

In 2022, Objectway held discussions with an unnamed investment fund and had also weighed a listing on the Milan bourse earlier that year. In 2021, it explored a sale of between 60% and 70% in a BNP Paribas–led process.

Objectway did not return requests for comment, while Houlihan Lokey declined to comment.