Otonomo buys UK connected insurance co The Floow

Ben Volkow Photo: Otonomo
Ben Volkow Photo: Otonomo

Israeli vehicle data platform Otonomo and The Floow will offer connected insurance solutions powered by the full spectrum of data sources.

Israeli vehicle data platform Otonomo (Nasdaq: OTMO) announced today that it has entered into a definitive agreement to acquire The Floow, a privately held UK-based company, in a cash and stock deal worth $69 million, including a performance based payments of up to $37.5 million.

Under the 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 achievement of certain business performance objectives. The acquisition is subject to approval by UK regulators and is expected to close in the second quarter of 2022. The Floow’s preliminary and unaudited revenue was between $6.5 million and $7 million for 2021.

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 policy holders.

Otonomo is building a mobility intelligence platform for powering the next generation of automotive, fleet, insurance, transportation, and mobility services. Otonomo’s cloud native platform uses AI, 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.

Over the last decade, The Floow has built a portfolio of connected insurance clients, alongside strategic partnerships with Munich Re and TransUnion. The two companies will integrate The Floow’s vehicle insurance tools, built in partnership with insurance companies, with Otonomo’s mobility intelligence platform built on OEM vehicle data. Otonomo and The Floow will offer connected insurance solutions powered by the full spectrum of data sources (OEM, mobile and aftermarket devices), generating insurance-grade scores and user analytics regardless of data origin.

Otonomo CEO Ben Volkow said, "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."

Otonomo's share price is down 1.41% on Nasdaq today, giving the company a market cap of over $185 million.

Published by Globes, Israel business news - en.globes.co.il - on February 28, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Ben Volkow Photo: Otonomo
Ben Volkow Photo: Otonomo
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