Otonomo Technologies Ltd., an Israeli mobility intelligence company, is buying out the British insurtech company The Floow, a SaaS provider of connected insurance technology for major carriers globally, in a Cash and Stock deal valued at up to $69 million, including up to $37.5 million performance-based earnout.
Under the definitive agreement, the aggregate cash and stock consideration to be paid and issued upon closing is valued at $31.5 million based on a share price of $2.75. Otonomo may issue additional cash and stock of up to $37.5 million dependent upon the achievement of certain business performance objectives. The acquisition is subject to approval by U.K. regulators and is expected to close within the second quarter of 2022.
The Floow is a SaaS provider of connected insurance technology for major carriers globally. The combination of vehicle and mobile data from Otonomo and The Floow will be crucial to enabling innovative, usage based and behavioral based insurance products and to move from “detect and repair” to “predict and prevent” models to create safer, greener and smarter driving experiences for policyholders. The Floow’s preliminary and unaudited revenue was between $6.5 million and $7 million for 2021.
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Founded in 2015, Otonomo boasts that it is building the “preeminent mobility intelligence platform for powering the next generation of automotive, fleet, insurance, transportation, and mobility services.” Otonomo’s cloud native platform uses artificial intelligence, sensor data and behavioral pattern mapping from more than 50 million accessible connected vehicles and more than 430 million accessible mobility end devices to provide the critical insights needed to optimize vehicle insurance, emergency services, mapping, traffic management, EV management, micro-mobility, predictive maintenance, and dozens of smart city solutions.
In 2021, Otonomo made its exit with a NASDAQ IPO via an SPAC merger. But since last August the company has lost up to 85% of its value
“Together, we believe Otonomo and The Floow will create the opportunity for both OEMs and insurance companies to accelerate the utilization of their data, create new products, improve customer experiences and accelerate business transformation,” said Ben Volkow, CEO of Otonomo. “We are pleased to be joining forces with The Floow’s CEO Aldo Monteforte, a visionary in his field, and the entire team.”