Who is Bending Spoons?
Bending Spoons, though not widely recognized outside the tech sector, is a prominent player in the global technology scene. Based in Milan, this software group has grown into one of Europe’s largest mobile app developers with over 300 million monthly active users. The company owns popular services such as Evernote, Remini, Meetup, Komoot, and WeTransfer. Recently, Bending Spoons acquired the American video platform Vimeo for $1.38 billion, making it one of the year’s significant tech deals in Europe.
Bending Spoons’ Acquisition Strategy
Founded in 2013, Bending Spoons has become a disruptor in the mergers and acquisitions market. This year alone, they have purchased six tech companies and plan to continue expanding their portfolio. CEO Luca Ferrari states, “We expect to invest approximately $2,000 million in acquisitions over the next six months.”
Investment and Valuation
In August, Bending Spoons raised $585 million in debt through a JP Morgan-led operation, valuing the company at $2.6 billion at the time. The firm targets businesses with high revenue potential where their expertise can make a substantial difference, either by halting decline or accelerating growth.
Transformation and Cost Optimization
Bending Spoons often transforms acquired companies by heavily investing in areas such as code rewrites, infrastructure upgrades, interface redesigns, new feature developments, and monetization optimization. This transformation frequently involves laying off a significant portion of the workforce, as seen with WeTransfer and Brightcove in the US. The goal is to achieve a more cost-optimized structure, ensuring all companies remain profitable.
Diverse Portfolio and Strategy
Bending Spoons’ acquisition strategy is characterized by its wide range of startups, with little to no relationship between them. For instance, Komoot focuses on outdoor activities, Evernote is a popular note-taking tool, and Meetup facilitates in-person gatherings for people with shared interests. Unlike traditional integration approaches, Bending Spoons emulates a conglomerate of consumer brands like Procter & Gamble, applying their tech development, optimization, and marketing expertise to promising digital businesses regardless of industry differences.
Business Model and Future Plans
Bending Spoons’ business model lies between a tech company and private equity. Unlike private equity firms that typically buy with the intention of selling later, Bending Spoons assures they never acquire with plans to divest. “80% of our resources are dedicated to building technology and developing products, and we have never sold any of our companies,” Ferrari confirms.
Attracting Talent
Bending Spoons’ unique approach makes it an attractive destination for tech professionals. Over 600,000 have applied to work with the company, which plans to open its first office outside Italy in London next year.
Key Questions and Answers
- Who is Bending Spoons? Bending Spoons is a Milan-based software group specializing in mobile app development, owning popular services like Evernote, Remini, Meetup, Komoot, and WeTransfer.
- What is their acquisition strategy? Bending Spoons targets tech businesses with high revenue potential, aiming to halt decline or accelerate growth through heavy investment in areas such as code rewrites, infrastructure upgrades, and monetization optimization.
- How do they differ from traditional tech companies or private equity firms? Unlike private equity, Bending Spoons does not intend to sell its acquired companies. They focus on building technology and developing products, ensuring all their companies remain profitable.
- What is their approach to diverse portfolios? Bending Spoons emulates a conglomerate of consumer brands, applying their tech expertise to various digital businesses without focusing on industry integration.
