New york: Technology company Bending Spoons has signed a definitive agreement to acquire AOL from Yahoo, marking another bold move in its rapid expansion into the digital services space. In a statement, Bending Spoons said the deal is expected to close by the end of the year, pending regulatory approvals and customary conditions.

According to BERNAMA News Agency, Bending Spoons CEO and co-founder Luca Ferrari described AOL as an iconic and beloved business with strong engagement metrics, noting around eight million daily and 30 million monthly active users. He emphasized the company’s intention to invest significantly to help the product and the business flourish.

Yahoo CEO Jim Lanzone stated that the sale allows Yahoo to sharpen its focus on its core products and artificial intelligence-driven roadmap. He also noted that the transaction ensures AOL continues to thrive under new ownership.

To fuel its mergers and acquisitions strategy, Bending Spoons secured a US$2.8 billion debt financing package from major global banks such as BNP Paribas, HSBC, Goldman Sachs, and J.P. Morgan. Ferrari mentioned that the financing is an endorsement of their strategy and strengthens Bending Spoons’ ability to acquire and transform digital businesses worldwide with a long-term view.

Advisors on the deal include Greenhill, Wells Fargo, and Willkie Farr and Gallagher LLP for Bending Spoons, while Yahoo was advised by J.P. Morgan Securities LLC, Allen and Company LLC, Latham and Watkins LLP, and Paul, Weiss, Rifkind, Wharton and Garrison LLP.