Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Italian tech company Bending Spoons has eye on US for potential IPO

Published 10/21/2024, 05:52 AM
Updated 10/21/2024, 09:20 AM
© Reuters. FILE PHOTO: Bending Spoons CEO Luca Ferrari poses for a portrait in Milan, Italy, October 17, 2024. REUTERS/Claudia Greco/File Photo
GOOGL
-

By Elvira Pollina

MILAN (Reuters) - The head of Italy's Bending Spoons says Milan is a great location for a start-up but he would probably favour New York were the tech company that owns services such as note-taking tool Evernote and photo editor Remini to list.

The Italian app developer, whose products count 200 million monthly users, is seen as a potential candidate for a public listing after a string of acquisitions this year, including file-sharing service WeTransfer in July.

Chief Executive Officer Luca Ferrari (NYSE:RACE), who co-founded the company in 2013, said there were no firm plans for an initial public offering (IPO) but Bending Spoons was working to be ready for it, and looking beyond Europe.

"If and when we choose to pursue an IPO, we'll evaluate all reasonable options. Today, we have a slight preference for a listing in the United States, but our views may change," Ferrari told Reuters in e-mailed comments.

In February, the Milan-based firm completed a funding round which valued it at $2.55 billion and marked it out as a rare unicorn in the Italian tech landscape. A unicorn is an unlisted firm valued at $1 billion or more.

Tech companies often look to list across the Atlantic because of higher valuations that can be attained. A U.S. listing would be a setback for the Milan Stock Exchange after a series of defections.

Limited access to capital and an excess of regulation are among the main constraints facing a company like Bending Spoons in Italy, Ferrari, aged 39, said.

However, Milan provides a good pool of skills, with competition for talent less fierce than elsewhere, he added.

"All in all, I still recommend starting and growing a business in Milan. Were I to start over, I'd favour Milan over many of the cities most commonly associated with entrepreneurship," he said.

MORE DEALS TO COME?

Bending Spoons, whose name was inspired by a scene in science fiction movie 'The Matrix', has a business model centred around revamping and developing the firms and products they acquire.

Ferrari described the strategy as "hybrid" between that of a private equity fund - which he says is the typical rival Bending Spoons competes with when it bids for an asset - and a proper tech company such as Alphabet (NASDAQ:GOOGL)'s Google.

He said the company had "the focus on acquisitions" of a private equity firm, but added: "we're engineers and scientists and we spend almost all of our time building technologies and products".

The WeTransfer deal involved a big restructuring, with 75% off its staff facing being laid off.

Ferrari did not rule out further deals this year, with the company casting its net widely.

© Reuters. FILE PHOTO: Bending Spoons CEO Luca Ferrari poses for a portrait in Milan, Italy, October 17, 2024. REUTERS/Claudia Greco/File Photo

"We've added around 5,000 companies to our business acquisition pipeline during the past 12 months alone. Naturally, only a handful will prove a suitable target in the end," he said.

(This story has been refiled to amend the final bullet point)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.