Germany-based industrial internet-of-things technology provider Relayr was acquired today by Hartford Steam Boiler (HSB), the equipment breakdown insurance subsidiary of reinsurance firm Munich Re, for $300m.
Founded in 2013, Relayr has created a middleware software platform that relies on artificial intelligence to offer data insights into new and legacy hardware. The technology makes it possible, for example, to predict when a machine is about to fail.
The company will continue to operate independently but will be able to tap into Munich Re’s financial and engineering resources and clientbase.
Relayr previously obtained approximately $30m in funding from investors including Deutsche Telekom Capital Partners, the corporate venturing division of telecoms firm Deutsche Telekom, in February this year. Purple Arch Ventures and B37 also backed that round.
Munich Re/HSB Ventures, the investment arm of Munich Re, led a $23m series B round in 2016 that included Kleiner Perkins Caufield and Byers and Munich Venture Partners, the latter two having already backed an $11m series A in 2015 alongside private investors.
Greg Barats, president and chief executive of HSB, and responsible for Munich Re’s internet of things strategy: “HSB has always focused on insurance and technology. Back in 2016, HSB invested in Relayr in an effort to harness the strategically significant business potential offered by IoT.
“Relayr’s end-to-end IoT solutions for the industrial and commercial sectors are an ideal addition to our group’s capabilities. Relayr will help us to rapidly implement our global strategy to develop new IoT solutions for our clients.
“Digital transformation in the industrial and commercial sectors offers opportunities for new services and financial applications.”