Story
S&P Upgrades Bending Spoons to 'BB-' on Successful Acquisition Strategy
Summary
S&P Global Ratings has raised Bending Spoons' credit rating to 'BB-' from 'B+', citing the company's increased scale and diversification following a series of successful acquisitions. The upgrade comes as the company prepares to acquire visual collaboration platform Miro.
S&P Global Ratings upgraded Bending Spoons SpA's credit rating to 'BB-' from 'B+', assigning a stable outlook, as the technology company successfully integrates a series of major acquisitions and expands its business scale. The ratings agency highlighted the company's increased diversification and proven ability to achieve cost savings from its acquired assets.
Details of the Rating Action
In a statement released Wednesday, S&P Global Ratings announced the upgrade for Bending Spoons and also raised its issue ratings on the company’s term loan B facilities to 'BB-' from 'B+'. The stable outlook reflects S&P's expectation that the company will maintain its improved financial metrics following its recent and pending acquisitions.
The action comes as Bending Spoons plans to raise approximately $1 billion through a term loan B add-on. These funds will partially finance the pending $1.4 billion acquisition of visual collaboration platform Miro and replenish its revolving credit facility.
Rationale for the Upgrade
The upgrade is primarily driven by Bending Spoons' enhanced scale and business diversification. Following recent acquisitions, including Airtable and Miro, the company's pro forma revenue is projected to reach $4 billion in 2026. S&P noted the strength of its subscription-based model, which accounts for approximately 80% of revenue, with no single business line contributing more than 20%.
AdS&P also cited the company's strong track record of integrating acquired companies and realizing cost efficiencies. Bending Spoons has reportedly achieved over 90% of expected cost savings for its Vimeo acquisition and between 60% and 75% for AOL, Eventbrite, and Tractive. The company also reported quarterly organic growth of 3% as of June 30, 2026.
Financial Outlook and Leverage
While the recent M&A activity is set to increase Bending Spoons' gross financial debt to approximately $5.7 billion by the end of 2026, S&P projects a strong financial performance. The ratings agency expects key credit metrics to remain solid, including:
- Adjusted debt to EBITDA remaining at approximately 4x in 2026.
- EBITDA cash interest coverage improving to above 3x by 2027.
- Adjusted EBITDA margin approaching 40%.
- Free operating cash flow to debt remaining above 10%.
S&P anticipates that Bending Spoons will integrate Miro, which generates around $600 million in annual recurring revenue, within its typical 18-month timeline after the deal closes.
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