Israeli vehicle data company Otonomo is planning to raise money via a merger with a special-purpose acquisition company at a valuation of more than $1 billion.
A SPAC is a shell company created to acquire an existing company in order to enable it to raise money through an IPO without going through the traditional IPO process. This one is named Software Acquisition Group, and the deal, as reported by Bloomberg, is slated to close within a week.
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Otonomo had considered launching another fundraising round and had talked with Israeli institutional investors, but ultimately chose to raise money through the merger, sources told TheMarker. Otonomo did not respond to a request for comment.
The company was valued at $465 million during its previous fundraising round, which was held in April, according to PitchBook data. The company has raised $82 million to date.
The company, founded in 2016, is developing a commerce platform for vehicle-related data. “Vehicles are all starting to be connected with a modem and a SIM card, and they send a ton of data to cloud via vehicle companies,” stated one of the founders, Ben Volkov to TheMarker in April. Otonomo processes the data and sells it to third parties such as municipalities, insurance companies and parking lot operators.
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Israeli software recommendation company Taboola announced a merger with a SPAC last week.