Cell and scoring technological know-how from The Floow merged with OEM-grade connected motor vehicle information from Otonomo to increase fidelity of insights and predictive analytics for insurers
Hard cash and Stock deal valued at up to $69 million, including up to $37.5 million performance-based mostly earnout
HERZLIYA, Israel and SHEFFIELD, United Kingdom, Feb. 28, 2022 (Globe NEWSWIRE) — Otonomo Technologies Ltd. (Otonomo) (Nasdaq: OTMO), the mobility intelligence firm, announced today that it has entered into a definitive agreement to purchase The Floow, a privately held enterprise headquartered in Sheffield, United Kingdom, in a funds and stock deal valued at somewhere around $69 million, including a functionality centered earnout of up to $37.5 million. Underneath the definitive agreement, the aggregate funds and stock thought to be compensated and issued upon closing is valued at $31.5 million based on a share price of $2.75. Otonomo may challenge more hard cash and stock of up to $37.5 million dependent upon accomplishment of specified business efficiency objectives. The acquisition is issue to approval by U.K. regulators and is predicted to shut inside the next quarter of 2022. The Floow’s preliminary and unaudited profits was between $6.5 million and $7 million for 2021.
The Floow is a SaaS service provider of linked insurance policies technological innovation for main carriers globally. The mix of auto and cellular info from Otonomo and The Floow will be essential to enabling impressive, use centered and behavioral primarily based insurance items and to go from “detect and repair” to “predict and prevent” designs to build safer, greener and smarter driving ordeals for coverage holders.
Otonomo is making the preeminent mobility intelligence platform for powering the upcoming era of automotive, fleet, insurance policies, transportation, and mobility expert services. Otonomo’s cloud native platform employs synthetic intelligence, sensor knowledge and behavioral pattern mapping from more than 50 million accessible related autos and extra than 430 million accessible mobility conclusion devices to present the critical insights wanted to improve motor vehicle insurance policies, unexpected emergency solutions, mapping, site visitors administration, EV management, micro-mobility, predictive routine maintenance, and dozens of intelligent metropolis options.
About the very last ten years, The Floow has built a portfolio of connected insurance policies customers, along with strategic partnerships with Munich Re and TransUnion. The Floow’s knowledge refinery system permits environment main insurance policy carriers to introduce “connectivity” to their items and differentiate their offerings by a much more exact comprehension of threat in the context of individualized solutions and products and services, enhanced highway basic safety via driver coaching and timely, exact roadside support.
The combination of the two businesses is predicted to combine The Floow’s car coverage resources, developed in partnership with insurance policies businesses, with Otonomo’s mobility intelligence system designed on OEM car or truck information. Jointly, Otonomo and The Floow will present linked insurance policies remedies powered by the complete spectrum of knowledge sources (OEM, cellular and aftermarket equipment), generating coverage-quality scores and user analytics no matter of data origin.
“Together, we believe that Otonomo and The Floow will generate the option for both equally OEMs and insurance plan providers to speed up the utilization of their knowledge, build new goods, strengthen consumer activities and speed up business transformation,” explained Ben Volkow, CEO of Otonomo. “We are happy to be becoming a member of forces with The Floow’s CEO Aldo Monteforte, a visionary in his subject, and the total crew.”
“I could not be prouder to announce we are joining the Otonomo group. This is a huge, bold stage that brings us nearer to our vision of safer and smarter mobility for all,” stated The Floow’s CEO Aldo Monteforte. “Our clientele and associates, some of the main insurers of the world, will have entry to a important and exceptional established of info merchandise, applications and sources to enable them contend and prosper in a linked new world in advance.”
“The Floow presents us with the technical underpinnings vital to make excellent, facts-driven products and solutions,” explained Joachim Mathe, Head of Worldwide Consulting at Munich Re. “Otonomo provides sizeable facts science heft to the Floow’s robust insurtech telematics engineering. Their combined supplying will strengthen our posture for the tidal wave of innovation coming in the vehicle insurance plan house.”
“Insurers have recognized telematics as a required capacity to compete in the vehicle business,” explained Matteo Carbone, founder of the IoT Insurance plan Observatory. “The potential of the field lies in facts-pushed and proactive choices the place possibility transfer and providers are integrated. The mix of Otonomo and The Floow is a wise transfer. With each other, they can offer insurers with a eyesight and mobility facts belongings capable of supporting their innovation journey.”
Otonomo fuels a information ecosystem of OEMs, fleets, and much more than 100 support companies spanning the transportation, mobility, and automotive industries. Our platform securely ingests much more than 4 billion information factors for each working day globally from in excess of 50 million motor vehicles certified on the system and enormous quantities of mobility need details from multimodal resources, then reshapes and enriches it, to accelerate time to marketplace for new services that strengthen the mobility and transportation practical experience. We present further visibility and actionable insights to empower strategic info-driven choices – having the guesswork out of mobility and transportation planning, deployment, and operations. Privateness by layout and neutrality are at the main of our platform, which permits GDPR, CCPA, and other privacy-regulation-compliant options employing both of those personalized and mixture knowledge. Use cases consist of emergency services, mapping, traffic management, EV management, subscription-centered providers, micro-mobility, parking, predictive upkeep, insurance policy, media, in-automobile expert services, and dozens of sensible metropolis methods.
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About The Floow
Based mostly in Sheffield, U.K., The Floow is a foremost telematics provider supplier created on the mission to make mobility safer and smarter for everyone.
We do this by delivering Linked Insurance policies methods to motor insurers that:
Improve their capacity to assess challenges via a suite of behavioral scores that are very predictive of statements propensity and enhance chance differentiation in contrast to traditional risk products.
Cut down operating expenditures by partaking drivers to support them enhance their effectiveness and turning them into associates in risk prevention, stopping fraud and providing on timely Initially Detect of Reduction.
Acquire knowledge from smartphones as well as most other sensing units in an agnostic manner.
Above the many years, The Floow has been identified with a range of awards, which include the Made in Sheffield Mark, the Prince Michael Global Road Protection Awards, the Queen’s Business Award (Innovation) for 2016, the Crimson Herring 100 in 2017 and the Diamond Award in 2017.
The Floow’s FloowDrive product was named Best Smarter Travel Innovation at the Smarter Vacation Awards, The Floow was named winner of the Technologies Innovation in the European Use-dependent Coverage Business from Frost & Sullivan in 2018 and Winner of the Insurance coverage Situations Tech and Innovation Information Analytics Excellence Award in 2019, and The Floow’s FloowCoach application was named Private Sector Initiative of the Year at the 2020 Younger Driver Concentration Awards.
For much more data make sure you pay a visit to: www.thefloow.com
Ahead Searching Statements
This announcement consists of specific ahead-wanting statements inside the which means of the federal securities legal guidelines, like statements relating to the companies available by Otonomo, the expected technological capability of The Floow, the expected benefits of the acquisition of the Floow, the amount of money and timing of synergies from the acquisition of the Floow, the expected technological capacity of Otonomo, the markets in which Otonomo operates and Otonomo’s projected upcoming monetary and operational outcomes. These forward-hunting statements frequently are identified by the words and phrases “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will carry on,” “will probable result,” and related expressions. Forward-looking statements are predictions, projections and other statements about foreseeable future gatherings that are based on existing anticipations and assumptions and, as a end result, are issue to threats and uncertainties. Numerous components could result in real long term occasions to vary materially from the forward-searching statements in this announcement, like but not confined to, the skill to put into action business programs, forecasts, and other anticipations, the capability to determine and notice more possibilities, and possible improvements and developments in the remarkably aggressive data market. The foregoing listing of things is not exhaustive. You should meticulously think about the foregoing components and the other challenges and uncertainties described in Otonomo’s prospectus submitted with the SEC on November 3, 2021, and other documents filed by Otonomo from time to time with the SEC. These filings establish and deal with other critical challenges and uncertainties that could induce actual gatherings and effects to vary materially from individuals contained in the forward-hunting statements. Ahead-searching statements discuss only as of the day they are made. Visitors are cautioned not to put undue reliance on forward-on the lookout statements, and Otonomo assumes no obligation and does not intend to update or revise these ahead-hunting statements, whether or not as a result of new facts, potential functions, or or else. Otonomo gives no assurance that it will obtain its expectations.
Preliminary Economic Effects of The Floow
The preliminary earnings of The Floow integrated in this launch is a preliminary final result are on the details out there to The Floow at this time. There are content restrictions inherent in producing estimates of The Floow’s outcomes prior to the completion of its typical financial closing processes, and its precise profits could range from this estimated preliminary consequence presented in this release owing to the completion of The Floow’s monetary closing treatments and closing changes. The believed preliminary earnings has not been audited or reviewed by the Floow’s unbiased registered public accounting firm. Accordingly, you must not place undue reliance on this preliminary facts.