Brightcove, a streaming tech company, is to be acquired by Bending Spoons, an Italian tech firm, in an all-cash transaction valued around $233 million.
The agreement gives Brightcove shareholders $4.45 per share in cash, representing a 40 percent premium at the time of the announcement. The transaction is expected to close in the first half of 2025, subject to regulatory and shareholder approval.
The deal is the latest in a string of acquisitions by Bending Spoons this year, following its takeover of both file-sharing company WeTransfer and digital publishing platform Issuu in July. Brightcove said the deal will allow it to leverage the technology and market expertise of the Italian company.
“We are pleased to have entered into this definitive agreement with Bending Spoons, which represents the culmination of a comprehensive strategic review process led by our Board of Directors and with the support of our management team and advisors,” said Diane Hessan, Chairman of Brightcove’s Board of Directors. “As the Board considered the long-term path for Brightcove, we unanimously determined that this transaction represents the best opportunity to maximise the value of the business and deliver compelling, certain, and immediate cash value to our stockholders.”
The takeover will see Brightcove become a privately held company and will be delisted from the stock exchange.
A bright future?
Brightcove was founded in 2004 as Video Marketplace Inc, before changing its name to Brightcove in 2005. The company specialises in cloud services for video, enabling clients to host, stream and monetise video content. It counts Marriott Hotels, Ford, and Johnson & Johnson among its customers.
After raising $100 million in private funds over six years, Brightcove launched an IPO in 2012. The demand for video streaming solutions during the pandemic saw its market cap soar in 2020, but has since fallen below its stock market debut. Its revenues for Q3 2024 were $49.9 million, a 2 percent decrease from the same quarter in 2023.
“Brightcove is a storied and successful enterprise SaaS leader with 20 years of history, 12 of them as a public company,” said Marc DeBevoise, CEO and Board Director at Brightcove. “We have been a pioneer and innovator in the streaming market, from the early days of video player technologies to the leading video-powered engagement platform we are today. Today’s announcement will enable Brightcove to leverage the technology and market expertise of Bending Spoons and best position Brightcove to continue to thrive in the streaming and engagement technology market.”
No details were given as to Brightcove’s structure under Bending Spoons, which has made heavy redundancies across its recent acquisitions, including WeTransfer and the video app Filmic, whose entire staff were laid off in 2023.
Bending Spoons CEO Luca Ferrari said the company looks to the long-term future of the companies it acquires. “When Bending Spoons acquires a business, we do so with the intention of owning and operating it indefinitely,” he said. “With this in mind, we’re excited about building on the strong work of the current team, and ensuring Brightcove thrives for many years to come.”
Brightcove has named Lazard as its financial advisor, and Goodwin Procter LLP as legal advisor. Bending Spoons meanwhile has appointed JP Morgan and Wells Fargo as M&A advisors, and Latham & Watkins LLP as legal advisors.
