Earlier this year, shares of traditional software-as-a-service (SaaS) companies tumbled as investors feared the rise of artificial intelligence could upend their business models. Despite these concerns, Bending Spoons, a company that acquires and revitalizes stagnating tech firms, saw its stock price surge 40% in its market debut.

It closed at $40.50 on Wednesday, nearly 40% above its IPO price of $29. At this valuation, the Milan-based firm has a market capitalization of $25.7 billion, more than double its last private valuation of $11 billion. The company raised $1.68 billion in its offering.

Bending Spoons has grown rapidly by acquiring aging but once-popular brands like AOL, Eventbrite, Evernote, Meetup and Vimeo, turning them profitable through aggressive cost-cutting, launching new features, and raising prices. While the company’s approach is similar to private equity, it differs in its plans not to sell these businesses.

The company reported $601 million in revenue for Q1, generating $27.4 million in net income. This represents a significant turnaround from the previous year when Bending Spoons reported a $112 million net loss on $259 million in revenue.

Bending Spoons, named after a scene in The Matrix, generated 84% of its revenue last year from subscriptions.