Berkshire Hathaway Inc. has agreed to inject an extra $330 million into Bending Spoons, lifting its holding in the Italian tech firm to 4%, only three months after it backed the company's initial public offering.
Shares of Bending Spoons surged 35% on the news.
The fresh funding hands Bending Spoons additional capital to chase acquisitions, as the Milan-based group keeps broadening its collection of digital businesses. Berkshire had earlier put $600 million into Bending Spoons at its July IPO.
Under the terms, Bending Spoons will issue 10 million ordinary shares to Berkshire at $33 each via a private placement, the company announced on Wednesday. The deal is still subject to customary closing conditions.
"Bending Spoons continuously evaluates M&A opportunities, and our pipeline remains strong," said Francesco Patarnello, co-founder and head of business acquisitions. He added that the investment would give the company greater financial flexibility to pursue further deals.
Bending Spoons has constructed its business around buying established technology companies and revamping their operations to boost profitability. Its portfolio features AOL, Vimeo, Evernote, WeTransfer, Eventbrite and Airtable.
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