Key takeaways:
- Bending Spoons shares surged 41% after Berkshire Hathaway announced another $330 million investment.
- The investment raises Berkshire’s stake in the Italian technology company to 4%.
- Bending Spoons plans to use the funds for acquisitions and corporate needs.
Bending Spoons stock rose 41% on Wednesday after Berkshire Hathaway announced plans to invest another $330 million in the Italian technology company. The stock climbed as high as $58 per share during morning trading, gaining 54% at its peak, before closing at $53.46. The investment follows Berkshire’s $600 million commitment during the company’s July initial public offering (IPO).
Berkshire’s investment and Bending Spoons’ market value
Berkshire Hathaway will purchase newly issued Bending Spoons shares through a private placement at $33 per share, according to a regulatory filing. The price is about 13% below Tuesday’s closing price. The transaction is expected to close in the fourth quarter.
The new investment will raise Berkshire’s stake in Bending Spoons to 4%. Berkshire initially invested $600 million during the company’s IPO, which was priced at $29 per share in July.
Despite the discounted price of the new shares, the investment announcement triggered a sharp rise in the public market. Bending Spoons stock reached an intraday high of $58, close to their record of $58.94 set on August 11. The stock’s closing price of $53.46 represented a gain of 41.2% for the day.
Trading volume exceeded 9.8 million shares, more than 4 times the stock’s average daily volume over the previous 3 months. The surge marked the company’s strongest trading day since its July 1 market debut.
Bending Spoons stock has gained around 80% from their IPO price of $29, giving the company a market value of approximately $33 billion. The stock had also risen sharply on October 7, closing 24% higher without an obvious catalyst. Although it later gave back some gains, it remained above its October 6 closing level before Wednesday’s announcement.
Acquisition strategy drives funding plans
Bending Spoons acquires established technology companies and changes how they operate. Its portfolio includes AOL, Vimeo, Evernote, WeTransfer, Eventbrite, and Airtable. The company completed its acquisition of Airtable on September 4.
On September 10, Bending Spoons agreed to acquire Miro at an enterprise value of $1.355 billion. The company continues to assess potential acquisitions as it expands its portfolio of technology businesses.
Bending Spoons said it would use the additional $330 million for general corporate purposes and new acquisitions. The funds are expected to provide greater financial flexibility as the company pursues further deals.
Chief Executive Officer and co-founder Luca Ferrari said Berkshire had long served as an inspiration for the company’s approach to capital allocation. Francesco Patarnello, another co-founder who leads acquisitions, said the investment would strengthen the company’s ability to pursue potential deals.
The investment adds to Berkshire’s existing position and provides Bending Spoons with additional capital for its acquisition strategy. Its market performance following the announcement also highlights investor interest in the company’s expansion plans and portfolio of established technology businesses.
