NASDAQ-listed Otonomo moves for Sheffield based The Floow

Peter Crawford, Lisa Wallis and Victoria Price from Freeths' corporate team are delighted to have advised The Floow and certain of its shareholders on the transaction. They were supported by specialists from Freeths' tax, competition, employment and real estate teams.

A cash and shares deal worth up to $69m (£51m) has been agreed for the acquisition of a Sheffield-based telematics technology specialist which works with prominent insurers across the world.

The Floow, founded in 2012 and a Queen's Award winner in 2016, is being acquired by NASDAQ-listed Otonomo Technologies, an Israel-headquartered business which is behind a platform and marketplace for vehicle data.

Since its incorporation, The Floow has built a portfolio of connected insurance clients, alongside strategic partnerships with Munich Re and TransUnion.

The company'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 personalised products and services, improved road safety through driver coaching and timely, accurate roadside assistance.

The combination of the two 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.

The deal is worth an initial $31.5m (£23.5m) based on a share price of $2.75. Otonomo may issue additional cash and stock of up to $37.5m (£28m) dependent upon achievement of certain business performance objectives.

Peter Crawford said: “Having acted for The Floow since start-up in 2012, we are very pleased to have been involved in this transaction, which is sure to be transformative for the company and the incredible team of people behind it. We are looking forward to seeing The Floow continue to thrive and prosper in the years to come.”

CEO and Founder of The Floow, Aldo Monteforte said: “The Floow have been fortunate to rely on Peter and Lisa as our trusted legal advisers for a decade. We could not have achieved this important milestone without their incredible professional support, deep knowledge of our business and constant readiness to go beyond the call of duty. They have acted as an extension of our team and a strategic partner along our entire journey, from start-up to leader in our space. I look forward to continuing our collaboration for many years to come.”