Private Equity Hipsters Target Your Favorite Apps: The Bending Spoons Approach! 📱

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Summary:

  1. Emerging Private Equity Player
    Italian tech firm Bending Spoons has gained attention as an unconventional private equity player by acquiring struggling tech companies and restructuring them for profitability.

  2. Acquisition of Evernote
    Notably, Bending Spoons purchased the note-taking app Evernote, among other acquisitions, as part of its strategy to enhance cash flow and profitability.

  3. Aggressive Cost-Cutting
    Post-acquisition, Bending Spoons has implemented steep price hikes and significant workforce reductions, dismissing over half of Evernote’s staff while increasing annual subscription costs by 63% to $130.

  4. Rapid Growth and Profitability
    This strategy has yielded results, with Bending Spoons reporting annual sales growth from $162 million in 2022 to $700 million, and Evernote achieving profitability earlier this year.

  5. Future Acquisition Plans
    CEO Luca Ferrari indicated that the company could invest up to $2 billion in future acquisitions, targeting subscription-based software companies with stable revenue.

Read more at: Bloomberg

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