Otonomo Technologies, an Israel-based vehicle data marketplace operator backed by corporates SK Holdings, Avis Budget Group, NTT Docomo and Delphi Automotive, agreed yesterday to execute a reverse merger.
The company is joining forces with special purpose acquisition company Software Acquisition Group II and will take the latter’s spot on the Nasdaq Capital Market.
The deal will be buoyed by almost $173m in private investment in public equity (PIPE) financing co-led by financial services and investment group Fidelity, financial services firm BNP Paribas’s Asset Management Energy Transition Fund and Senvest Management.
The PIPE also features Dell Technologies Capital and Hearst Ventures, investing on behalf of computing technology producer Dell and media company Hearst. The combined company will be valued at $1.4bn once the deal closes.
Otonomo sources data from connected vehicles and its software then organises it and converts it into information that can be used by stakeholders such as original equipment manufacturers.
Ben Volkow, founder and vhief executive of Otonomo, said: “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.”
The transaction will follow $82m in funding, $46m from conglomerate SK Holdings, car rental service Avis Budget Group, Alliance Ventures – a joint venture between carmakers Renault, Nissan and Mitsubishi – and Bessemer Venture Partners (BVP) in an April 2020 series C round.
NTT Docomo, a subsidiary of mobile network operator, invested $3m in Otonomo in 2018, the year after automotive component producer Delphi led a $25m series B round that included existing backers BVP, Maniv Mobility and StageOne Ventures. Its investors also include LocalGlobe.
