Berkshire Hathaway (BRK.A/BRK/B) has agreed to pour another $330 million into Milan-based software operator Bending Spoons (BSP).
The firm will buy 10 million newly issued ordinary shares at $33 apiece in a private placement, reports 24/7 Wall St.
The latest outlay builds on a $600 million investment at the July initial public offering, bringing Berkshire’s combined commitment near $930 million at purchase prices and taking its ownership to about a 4% stake, says Bending Spoons.
Says co-founder and chief executive Luca Ferrari,
“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 acquires and runs mature software and internet businesses such as Airtable, AOL, Brightcove, Eventbrite, Evernote, Tractive, Vimeo and WeTransfer.
Shares closed at $53.46 on Thursday after jumping 41.2% from the prior session’s price of $37.86, leaving the stock well above the $33 price Berkshire locked in.
Says Francesco Patarnello, Bending Spoons Head of Business Acquisitions and co-founder,
“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 placement price was fixed before the rally, so buyers at the close paid a steep premium to Berkshire’s entry.
The private placement remains subject to standard closing conditions, with closing expected in the fourth quarter.
Berkshire’s Class B shares rose about 1% after the announcement.
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