Bending Spoons priced its IPO at $29 per share, above the $26 to $28 offering range, achieving an $18.4 billion valuation. In an interview with Axios, co-founder and CEO Luca Ferrari discussed the company's acquisition strategy, revealing that Bending Spoons has identified more than 1,000 potential acquisition targets and historically acquires four to five companies annually. The company's business model centers on deeply integrating acquired businesses into its platform and rebuilding them from the ground up, focusing on predictable businesses where significant improvements can be achieved through technology, product, and monetization transformations.
Bending Spoons Prices IPO Above Expected Range
The company's shares fetched $29 per share, exceeding the $26 to $28 per share offering range. This pricing imputes an $18.4 billion valuation for Bending Spoons.
Ferrari Outlines Acquisition Target Criteria
Ferrari explained that the company casts a broad net but prioritizes predictability in acquisition targets. "We want to feel confident that we know where the business is going, especially once integrated into our platform for a long time horizon, and also that we believe we can improve the business dramatically," Ferrari stated.
The CEO described the company's approach as integrating acquired companies deeply onto its platform and rebuilding them almost from the ground up, including technology, product, monetization, and significant portions of the team. Ferrari noted that if the company does not see the potential to make a substantial difference, it does not expect to make an appealing offer.
Bending Spoons does not follow a thematic acquisition strategy and does not cross-sell its products. The company has acquired consumer businesses, SME businesses, and enterprise businesses, mostly focused on subscriptions with some advertising revenue.
Company Maintains Four to Five Annual Acquisition Pace
Ferrari addressed the company's acquisition capacity, noting that the transformations are extremely time-consuming. "We almost unsee a business and try to reimagine it — the most high-performance, most successful version of it — and then try to close the gap between the current state and that vision," he explained.
Historically, Bending Spoons has acquired four or five companies per year, with deal sizes increasing as the company grows its top line. Ferrari estimated that over the next five or six years, 90% of the identified 1,000 companies would be buyable if the company makes a good enough offer.
First Acquisition Cost $10,000 for iPhone Keyboard App
The company's first acquisition was an iPhone app that enabled users to personalize their keyboard with different colors, shapes, and user experiences. Bending Spoons paid $10,000 for this initial deal.
Ferrari revealed that the company shut down the app maybe six or seven years ago because it was too small and had only a few users. He compared the significance of the first acquisition to a tennis player's first amateur match, noting it was meaningful as the first step down the path rather than for the deal itself.
CEO Emphasizes Long-Term Vision Post-IPO
Ferrari outlined his message to the Bending Spoons team following the IPO. "I really believe that in so many ways we're just getting started," he stated. "The vision we had for this business over a decade ago was to build one of the most remarkable, most important companies in the world. And if you look at what we've achieved through that lens, we've achieved very little."
The CEO expressed that the company carries its founding spirit into this next chapter, along with better tools and better access to capital.
FAQ
What was Bending Spoons' IPO pricing?
Bending Spoons priced its IPO at $29 per share, above the expected $26 to $28 offering range, resulting in an $18.4 billion valuation.
How many companies does Bending Spoons acquire annually?
Bending Spoons has historically acquired four or five companies per year, with the size of acquisitions increasing as the company's top line grows.
What was Bending Spoons' first acquisition?
The company's first acquisition was an iPhone keyboard personalization app purchased for $10,000, which was shut down six or seven years ago due to its small user base.
