OCTO acquires Nebula Systems

Italian IoT and telematics solutions provider OCTO Telematics has acquired Nebula Systems.

Established in 2013, Nebula Systems specializes in the development of advanced cloud technologies for the automotive and connected car industries. “We are making vehicle systems and data more accessible – so that a vehicle’s health, status and operation can be monitored, analyzed, diagnosed and maintained, faster and more effectively than ever before – anytime and from anywhere.”

Some history: On 24 February 2016, RAC Midco Limited, a direct subsidiary of RAC, acquired 51% of the issued share capital of Nebula Systems for cash consideration of £4 million to “boost power of telematics.” The acquisition included a put and call option to acquire the remaining 49% of the issued share capital, exercisable between the three and six year anniversaries, at a value determined by future earnings. The put and call option was valued at £8 million as at 31 December 2016. During the year the put and call option was revalued to “nil.” Shortly after the year end, RAC Midco Limited sold its entire shareholding in Nebula Systems for a cash consideration of £300k.

Bottom Line: The acquisition confirms OCTO’s commitment to respond to the increasing demand for vehicle usage data analysis tools, with advantages for insurance, automotive and mobility companies with its increasingly integrated and complete offering.