❯ Berkshire Hathaway invests another $330 million in Bending Spoons, lifting its stake to 4%

10 million shares at a discountAccording to a Form 6-K Bending Spoons filed with the SEC, Berkshire Hathaway will buy 10 million shares at $33 each, about $330 million, raising its stake to 4%. The price is about 13% below the previous close. According to the Financial Times, the shares jumped more than 40% on the news. The deal is expected to close in the fourth quarter.

Buying mature software and remaking itBending Spoons is an Italian tech company whose model is to acquire established digital businesses, restructure and continuously optimize them to grow earnings, and reinvest the proceeds in further acquisitions. Its portfolio includes Evernote, Vimeo, WeTransfer, Eventbrite, Airtable and AOL. It listed on Nasdaq in July, when Berkshire invested $600 million.

Ammunition for dealsThe company says the money will go to general corporate purposes and new acquisitions. Francesco Patarnello, its head of business acquisitions, said the company continuously evaluates M&A opportunities and its pipeline remains strong. Berkshire’s long-term capital adds to Bending Spoons’ firepower, and mature software products with slowing growth now have a buyer that can act with more confidence.

▮ SIGNALMature software does not have to grow fast to make money; acquiring, integrating and steadily optimizing it can be a business too, and that is the model patient capital is backing.