Otonomo Technologies, a mobile intelligence company, has entered into a definitive agreement to acquire connected insurance technology provider The Floow.
The transaction is a a cash and stock deal valued at approximately $69m, including a performance based earnout of up to $37.5m. Under the agreement, the cash and stock to be paid upon closing is valued at $31.5m based on a share price of $2.75. Otonomo may issue additional cash and stock of up to $37.5m dependent upon achievement of certain business performance objectives.
The Floow is a SaaS provider of connected insurance technology for major carriers globally. Otonomo said the combination of vehicle and mobile data from Otonomo and The Floow will be crucial to enabling innovative, usage based and behavioural 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.
Ben Volkow, CEO of Otonomo, said, “Together, we believe Otonomo and The Floow will create the opportunity for both OEMs and insurance companies to accelerate the utilisation of their data, create new products, improve customer experiences and accelerate business transformation.”
The acquisition is expected to close in the second quarter of 2022.
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