A cash and shares deal worth up to $69m (£51m) has been agreed for the acquisition of a Sheffield-based telematics technology specialist which works with prominent insurers across the world.
The Floow, founded in 2012 and a Queen’s Award winner in 2016, is being acquired by NASDAQ-listed Otonomo Technologies, an Israel-headquartered business which is behind a platform and marketplace for vehicle data.
Since its incorporation, The Floow has built a portfolio of connected insurance clients, alongside strategic partnerships with Munich Re and TransUnion.
The company’s data refinery platform enables insurance carriers to introduce “connectivity” to their products and differentiate their offerings through a more precise understanding of risk in the context of personalised products and services, improved road safety through driver coaching and timely, accurate roadside assistance.
The combination of the two is expected to integrate The Floow’s vehicle insurance tools, built in partnership with insurance companies, with Otonomo’s mobility intelligence platform built on OEM vehicle data.
The deal is worth an initial $31.5m (£23.5m) based on a share price of $2.75. Otonomo may issue additional cash and stock of up to $37.5m (£28m) dependent upon achievement of certain business performance objectives.
Peter Crawford, Lisa Wallis and Victoria Price from Freeths’ corporate team advised The Floow and certain of its shareholders on the transaction. They were supported by specialists from Freeths’ tax, competition, employment and real estate teams.
Peter Crawford said: “Having acted for The Floow since start-up in 2012, we are very pleased to have been involved in this transaction, which is sure to be transformative for the company and the incredible team of people behind it. We are looking forward to seeing The Floow continue to thrive and prosper in the years to come.”
The acquisition is subject to approval by UK regulators and is expected to close within the second quarter of 2022.
“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.”
“I could not be prouder to announce we are joining the Otonomo team. This is a big, bold step that brings us closer to our vision of safer and smarter mobility for all,” said The Floow’s CEO, Aldo Monteforte. “Our clients and partners, some of the leading insurers of the world, will have access to a significant and unique set of data products, tools and resources to help them compete and thrive in a connected new world ahead.”
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