Hi there,
you can use this CSS to reduce the spacing:
/* remove bottom margin */
#text-9 .textwidget p {
margin-bottom: 0;
}
/* reduce height of the Hard Rule */
#text-9 .textwidget hr {
margin-top: 10px;
margin-bottom: 10px;
}
the rest of the spacing comes from any line breaks you have added in your Widget HTML.
I would suggest using a HTML Widget instead of a text widget – if you do this then we would need to adjust the CSS above if its is still required.