This site uses cookies to ensure the best viewing experience for our readers.
Otonomo to acquire connected insurance provider The Floow for up to $69 million

Otonomo to acquire connected insurance provider The Floow for up to $69 million

The Israeli company’s cloud native platform uses artificial intelligence, sensor data and behavioral pattern mapping to provide insights needed to optimize vehicle insurance, emergency services, mapping, and more

CTech | 15:45  28.02.2022

Vehicle data platform and marketplace Otonomo announced on Monday that it is acquiring The Floow, a privately held company headquartered in Sheffield, UK, in a cash and stock deal valued at approximately $69 million. The deal includes a performance based earnout of up to $37.5 million.

The Floow is a SaaS provider of connected insurance technology for major carriers globally. Otonomo believes that the combination of vehicle and mobile data from the company and The Floow will allow it to develop 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 CEO Ben Volkow. Photo: Otonomo Otonomo CEO Ben Volkow. Photo: Otonomo Otonomo CEO Ben Volkow. Photo: Otonomo

Otonomo went public on Nasdaq via a SPAC merger last year and has seen its market cap plummet by almost 85% since last August to around $190 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 (at the close of last week Otonomo shares were traded at $1.42). Otonomo said it 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.

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 insights needed to optimize vehicle insurance, emergency services, mapping, traffic management, EV management, micro-mobility, predictive maintenance, and dozens of smart city solutions.

Related articles:

The Floow’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 personalized products and services, improved road safety through driver coaching and timely, accurate roadside assistance.

“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.

share on facebook share on twitter share on linkedin share on whatsapp share on mail

TAGS