Berkshire Hathaway (BRK.A/BRK/B) has announced a new investment of $330 million in Milan-based software company Bending Spoons (BSP).
As part of the deal, Berkshire will acquire 10 million newly issued ordinary shares at a price of $33 per share in a private placement, as reported by 24/7 Wall St.
This investment follows a previous $600 million investment during Bending Spoons’ initial public offering in July, bringing Berkshire’s total commitment to nearly $930 million and giving them a 4% stake in the company, according to a statement from Bending Spoons.
Co-founder and CEO Luca Ferrari expressed his admiration for Berkshire Hathaway, stating, “For decades now, Berkshire Hathaway has been among the finest and most respected capital allocators in the world, and is a longstanding inspiration for Bending Spoons.”
Bending Spoons specializes in acquiring and managing mature software and internet businesses such as Airtable, AOL, Brightcove, Eventbrite, Evernote, Tractive, Vimeo, and WeTransfer.
Following the news, Bending Spoons’ stock closed at $53.46 on Thursday, marking a 41.2% increase from the previous session’s price of $37.86, well above the $33 purchase price set by Berkshire.
Francesco Patarnello, Bending Spoons Head of Business Acquisitions and co-founder, commented on the investment, saying, “Bending Spoons continuously evaluates M&A opportunities, and our pipeline remains strong. We believe Berkshire Hathaway’s investment reflects confidence in our team and Platform and will further enhance our financial flexibility and ability to pursue attractive acquisitions as part of our broader financing strategy.”
The private placement is expected to close in the fourth quarter, subject to standard closing conditions, with Berkshire’s Class B shares seeing a 1% increase after the announcement.
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