Milan-based technology conglomerate Bending Spoons has agreed to acquire AOL, the web portal and email provider, from Apollo Global Management-owned Yahoo.
To finance the acquisition of AOL as well as future M&A, Bending Spoons also announced the successful completion of a $2.8 billion debt financing package.
Further, Bending Spoons announced it has raised $710 million in equity “at a pre-money valuation of $11 billion.” The round comprises $270 million in primary capital and $440 million in secondary capital.
The latest investment was led by accounts advised by T. Rowe Price Investment Management, with participation from Baillie Gifford, Cox Enterprises, Durable Capital Partners, Fidelity Management & Research Company, Foxhaven Asset Management, and Radcliff, among others.
“AOL is an iconic, beloved business that’s in good health, has stood the test of time, and we believe has unexpressed potential,” said Bending Spoons CEO and co-founder Luca Ferrari.
“By our estimation, AOL is one of the top ten most-used email providers in the world, with a highly retained customer base counting around 8 million daily and 30 million monthly active users.
“We intend to invest significantly to help the product and the business flourish. Bending Spoons has never sold an acquired business — we’re confident we’re the right long-term steward for AOL, and look forward to serving its large, loyal customer base for many years to come.”
Yahoo CEO Jim Lanzone said: “AOL and Yahoo share a great deal of history, and our new team has enjoyed the opportunity to return AOL to growth.
“This transaction will allow us to focus more deeply on the aggressive roadmaps we have planned for Yahoo’s core products moving forward, while ensuring AOL continues to thrive under new ownership.”
Reed Rayman, chair of Yahoo’s board and Partner at Apollo, said: “Since Apollo Funds acquired Yahoo in 2021, we’ve helped the company drive transformational reinvestment in its digital media assets and consumer technology, producing strong performance across Yahoo’s properties.
“We believe this transaction positions AOL well for its next phase, while Yahoo accelerates investment in its flagship properties and AI-powered experiences.”
Last month, Bending Spoons announced a definitive agreement to acquire Vimeo.
Bending Spoon’s $2.8 billion debt financing package includes committed Term Loan A and Term Loan B facilities, alongside incremental Revolving Credit Facility commitments, provided by banks including Banco BPM, BNP Paribas, Crédit Agricole CIB, Goldman Sachs, HSBC, Intesa Sanpaolo, J.P. Morgan, Mitsubishi UFJ Financial Group, Mizuho, Société Générale, UniCredit, and Wells Fargo.
The Term Loan B syndication will be led by J.P. Morgan Chase Bank N.A. in the US and by BNP Paribas, Crédit Agricole CIB, J.P. Morgan SE, and UniCredit in Europe.
“We appreciate the support of so many of the world’s finest banks, which we view as an endorsement of our strategy, and which builds on the mutual trust we’ve established with many of these institutions over years of collaboration,” said Ferrari.
“This financing strengthens our ability to continue acquiring and transforming digital businesses worldwide with a long-term view.”
Bending Spoons owns numerous firms including Brightcove, Evernote, komoot, Meetup, Remini, StreamYard and WeTransfer.