Italian software firm Bending Spoons is acquiring workplace collaboration startup Miro for $1.36 billion in cash, a steep decline from Miro’s $17.5 billion valuation in late 2021. Originally launched in 2011 as RealtimeBoard, Miro gained significant traction during the COVID-19 pandemic as a digital whiteboarding solution for remote teams. The company evolved by integrating with over 250 apps and partnering with major players including Atlassian, Cisco, Microsoft, and Zoom, positioning itself as an AI-driven innovation workspace.

Despite impressive growth between 2020 and 2022, when Miro’s users jumped from 5 million to 30 million and paying customers multiplied by 550%, its growth rate has since slowed. The platform now boasts over 100 million total users and 4 million paid subscribers, generating approximately $600 million in annual recurring revenue, primarily from enterprise clients. Miro remains profitable and holds around $435 million in net cash, reflecting a stable business despite the drop in valuation.

The dramatic 92% decrease in Miro’s worth highlights the broader trend of declining software-as-a-service (SaaS) valuations after the pandemic’s remote work surge waned. As companies cut costs and consolidated software tools, competition from well-funded rivals like Canva, Figma, and Microsoft intensified. Miro also faced internal challenges, including significant layoffs in 2023 and 2024, scaling back from roughly 1,200 employees to better align with market conditions.

Bending Spoons has recently acquired several previously overvalued software companies for a fraction of their peak valuations, including Airtable, which it bought for $1.28 billion last month. The Italian acquirer seems to be capitalizing on mature SaaS businesses with solid revenue but slower growth trajectories. The rationale behind Miro’s board and investors agreeing to sell now, despite profitability and cash reserves, remains unclear, raising questions about the current confidence levels in public market or exit opportunities for SaaS firms.