US mobility and roadside assistance tech company Urgent.ly has acquired Israeli car data services platform company Otonomo (Nasdaq: OTMO)). Otonomo listed on Nasdaq 18 months ago following a SPAC merger at a company valuation of $1.26 billion but has since lost 94% of its value.
Otonomo will become a subsidiary of Urgent.ly, while Otonomo cofounder and CEO Ben Volkow will become a director of the merged company, which will be managed by Urgent.ly CEO Matt Booth. When the merger is completed Urgent.ly will list on Nasdaq.
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Under the terms of the merger, Otonomo shareholders will receive 33% of the merged company in full dilution – Otonomo’s current market cap is $70 million. As Urgent.ly is not currently a publicly-traded company its exact valuation is not known but according to previous reports the company has raised $130 million in several financing rounds from investors such as BMW, Jaguar and Porsche. In 2022 revenue grew 25% to $185 million.
Otonomo is yet to report its full year 2022 results but in the first nine months of the year revenue was $4.9 million, up from $657,000 in the corresponding period of 2021. The company’s operating loss amounted to $41.6 million.
Volkow said, “Merging Otonomo and Urgent.ly is an exciting step for Otonomo that advances our vision of empowering the future of mobility and connected services. Mobility assistance is a real-world application for connected vehicle data and, by combining both companies’ technologies, we will provide new solutions for the betterment of customer safety, security and accessibility.”
Evercore served as financial advisor to Urgent.ly, and B. Riley Securities served as co-financial advisor to Urgent.ly in connection with the transaction. Wilson Sonsini Goodrich & Rosati, PC and Herzog Fox & Neeman served as its legal advisors. Needham & Company, LLC served as exclusive financial advisor to Otonomo, and Latham & Watkins LLP and Gross, Kleinhendler, Hodak, Halevy, Greenberg, Shenhav & Co. served as its legal advisors.
Published by Globes, Israel business news – en.globes.co.il – on February 12, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
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