Bending Spoons stock soars on new Berkshire Hathaway investment
Bending Spoons stock (BSP) soared 41% on Wednesday after the Italian tech company said Berkshire Hathaway (BRK-B) will invest another $330 million in it.
The stock rose 54% to $58 per share at one point in the morning, just shy of its intraday record of $58.94 set on Aug. 11. Wednesday was the stock’s best day since its July 1 market debut.
Trading volume passed 9.8 million, more than four times the stock’s three-month daily average, according to Yahoo Finance data.
Berkshire is buying the new stock in a private placement at $33 per share, about 13% below Tuesday’s close, according to a filing with the Securities and Exchange Commission on Wednesday.
The deal lifts Berkshire’s stake to 4%, the company said. Berkshire invested $600 million in Bending Spoons at its initial public offering in July. The IPO was priced at $29.
The stock is up around 80% from its IPO price, giving Bending Spoons a market value of about $33 billion.
Bending Spoons said it will use the money for general corporate purposes and new acquisitions. It expects the deal to close in the fourth quarter. Neither the announcement nor the filing included a comment from Berkshire.
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“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,” CEO and co-founder Luca Ferrari said in the announcement.
“Bending Spoons continuously evaluates M&A opportunities, and our pipeline remains strong,” said co-founder Francesco Patarnello, who leads the company’s acquisitions. He said the investment “will further enhance our financial flexibility and ability to pursue attractive acquisitions.”
Bending Spoons buys established tech companies and overhauls how they run. Its businesses include AOL, Vimeo, Evernote, WeTransfer, Eventbrite, and Airtable, which it finished acquiring on Sept. 4. On Sept. 10, it agreed to buy Miro at an enterprise value of $1.355 billion.
Wednesday’s surge follows another jump a week earlier. The stock closed up 24% on Oct. 7 without an obvious catalyst. It gave back part of that gain but closed Tuesday more than 14% above its Oct. 6 close.
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