- Mobile and scoring technology from The Floow combined with OEM-grade connected vehicle data from Otonomo to improve fidelity of insights and predictive analytics for insurers
- Cash and Stock deal valued at up to $69 million, including up to $37.5 million performance-based earnout
Sheffield, UK (Feb. 28, 2022) – Otonomo Technologies Ltd., the mobility intelligence company, is pleased to announce that it has entered into a definitive agreement to acquire The Floow, a privately held company headquartered in Sheffield, United Kingdom, in a cash and stock deal valued at approximately $69 million, including a performance based earnout of up to $37.5 million. 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 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’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 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.
Over the last decade, The Floow has built a portfolio of connected insurance clients, alongside strategic partnerships with Munich Re and TransUnion. The Floow’s data refinery platform enables world leading insurance carriers to introduce “connectivity” to their products and differentiate their offerings through a more precise understanding of risk in the context of personalized products and services, improved road safety through driver coaching and timely, accurate roadside assistance.
The combination of the two companies 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. Together, 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.
“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.”
“The Floow provides us with the technical underpinnings necessary to create superior, data-driven products,” said Joachim Mathe, Head of Global Consulting at Munich Re. “Otonomo adds considerable data science heft to the Floow’s robust insurtech telematics technology. Their combined offering will strengthen our position for the tidal wave of innovation coming in the auto insurance space.”
“Insurers have recognized telematics as a necessary capability to compete in the auto business,” said Matteo Carbone, founder of the IoT Insurance Observatory. “The future of the industry lies in data-driven and proactive offerings where risk transfer and services are integrated. The combination of Otonomo and The Floow is a smart move. Together, they can provide insurers with a vision and mobility data assets capable of supporting their innovation journey.”
About The Floow
The Floow launched in 2012 with a mission to make mobility safer and smarter via a range of innovative telematics solutions. Headquartered in Sheffield (UK) and Detroit (USA), The Floow serves as a telematics data refinery for many of the world’s leading insurance providers and motor manufacturers across the US, Europe, Africa, and South America.
The Floow has a proven track record of helping people drive more safely and reducing claims frequency. Further, through its coaching services for higher risk drivers, The Floow has helped insurers to reduce accident propensity by a further 13 percent in some of the poorest performing segments of their portfolio. For more information, visit www.thefloow.com.
Otonomo (Nasdaq: OTMO) fuels a data ecosystem of OEMs, fleets, and more than 100 service providers spanning the transportation, mobility, and automotive industries. Our platform securely ingests more than 4 billion data points per day globally from over 50 million vehicles licensed on the platform and massive amounts of mobility demand data from multimodal sources, then reshapes and enriches it, to accelerate time to market for new services that improve the mobility and transportation experience. We provide deeper visibility and actionable insights to empower strategic data-driven decisions – taking the guesswork out of mobility and transportation planning, deployment, and operations. Privacy by design and neutrality are at the core of our platform, which enables GDPR, CCPA, and other privacy-regulation-compliant solutions using both personal and aggregate data. Use cases include emergency services, mapping, traffic management, EV management, subscription-based services, micro-mobility, parking, predictive maintenance, insurance, media, in-vehicle services, and dozens of smart city solutions. For more information, visit otonomo.io
Source: OtonomoTags: Acquisition, The Floow