Italian technology company Bending Spoons entered into a definitive agreement to acquire web portal and email provider AOL from Yahoo, which is backed by private equity giant Apollo Global Management.

While the financial terms were not available, Reuters previously reported app developer Bending Spoons was paying $1.4 billon to buy the early internet pioneer.

Bending Spoons stated yesterday (29 October) it secured a $2.9 billion debt financing package to close the deal, as well as to support investments in research and development and future M&A activity.

Bending Spoons CEO and co-founder Luca Ferrari describes AOL as a healthy, iconic brand with “unexpressed potential”.

He noted AOL is still among the top ten global email providers, serving about 8 million daily and 30 million monthly active users.

“We intend to invest significantly to help the product and the business flourish,” he stated. “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.”

The deal is expected to close by year end, subject to customary closing conditions and regulatory approvals.

AOL was previously owned by Time Warner from 2001 to 2009 and by Verizon Communications from 2015 to 2021.

AOL will join other global brands in Bending Spoons’ portfolio, including recent acquisition agreements for Vimeo which is expected to close in Q4.