Bending Spoons, a Milan-based company known for acquiring and revamping software businesses like Vimeo and AOL, successfully raised $1.68 billion in its U.S. initial public offering. The company and its backers, including Baillie Gifford, sold approximately 57.97 million shares at $29 each, surpassing the initially marketed range of $26 to $28. Of these, Bending Spoons offered 34.4 million shares, while selling shareholders offered 23.57 million shares.
The IPO valued Bending Spoons at $18.4 billion based on its outstanding shares. This public debut is considered a notable event in the software industry, especially given earlier concerns this year about AI's potential disruption to established business models. Analysts, such as Matt Kennedy from Renaissance Capital, noted that Bending Spoons' profile is distinct compared to most software IPOs in the pipeline, offering an interesting data point for the sector.
Bending Spoons' business model involves acquiring struggling digital businesses and revitalizing them through strategies like staff reductions and technological overhauls, a hybrid approach between private equity and a tech company. Unlike traditional private equity firms, Bending Spoons aims to retain the acquired businesses. The company has a history of over 50 acquisitions, including Brightcove, Vimeo, AOL, Eventbrite, Evernote, WeTransfer, and Meetup, and has identified more than 1,000 potential future acquisition targets. The company was founded in 2013 by CEO Luca Ferrari and co-founders with the remaining funds from a prior venture.
