Israeli automotive data firm Otonomo announced on Monday it is to list on Nasdaq through a business combination with Software Acquisition Group Inc. II.
The deal gives Otonomo a valuation of $1.4 billion.
As part of the transaction, Otonomo will fetch $307 million in cash, including a $172.5 million private investment from investors such as Fidelity Management & Research Co and BNP Paribas Asset Management Energy.
The company also said strategic investors Dell Technologies Capital and Hearst Ventures, would provide support of $25 million of cash currently on hand.
The company said cash proceeds from the transaction would be used to fund the growth of the combined company, accelerating go-to-market strategy, strengthening our leadership position and unlocking new use cases and end markets.
The combined company would be listed on Nasdaq.
“This is an industry-defining moment. Otonomo’s vehicle data platform and marketplace are primed to unleash the full potential of connected vehicle data. We have succeeded in bringing the widest diversity of data providers to a marketplace, developing a proprietary and highly scalable technology platform, and building a global and diverse network of data providers and consumers,” Ben Volkow, Otonomo, CEO and Founder, said in a statement.
” Recent investments and our partnership with Software Acquisition Group II signify confidence in our strategy, the forward drive of our business and the significant growth opportunity that awaits. We look forward to Otonomo’s continued and increasing impact on the driving experience, unlocking new opportunities for our data consumers across multiple markets and the entire transportation ecosystem.”
Otonomo is the premier one-stop shop for vehicle data. Since its founding in 2015, Otonomo has built a vehicle data platform and marketplace that now fuels an ecosystem of 16 OEMs, fleets and more than 100 service providers. The platform ingests more than 4 billion data points per day from over 40 million global connected vehicles, then reshapes and enriches them, in order to accelerate the time to market for new services that improve the in-and-around the car experience.
Otonomo’s platform allows automotive OEMs the opportunity to create new revenue streams by enabling the utilization of the vast amounts of data vehicles to generate on a daily basis and that OEMs are required to store and maintain.
“We established Software Acquisition Group Inc. II to invest in a world-class software company that is positioned to be the leading player in a market that has enormous potential. We reviewed multiple potential partners and Otonomo stood out as the clear choice,” Jonathan Huberman, Software Acquisition Group Inc. II, CEO, said in a statement.
“Otonomo management not only identified the significant opportunity that exists in the automotive data space, but they have also achieved early market leadership and are positioned for impressive growth.”
Otonomo vehicle data is being utilized by organizations and businesses across diverse areas, including, but not limited to fleet management, insurance, in-vehicle management, emergency services, mapping, electric vehicle (EV) management, subscription-based services, parking, predictive maintenance, in-vehicle services, traffic management and smart cities.
Today, Otonomo’s platform takes in 2.6 billion data points a day from more than 20 million vehicles through partnerships with more than automakers, fleets and farm and construction manufacturers. Otonomo has more than 25 partnerships, a list that includes Daimler, BMW, Mitsubishi Motor Company and Avis Budget Group
