Otonomo gets roadside assistance

Mobility data company Otonomo and roadside assistance provider Urgently have entered into a definitive agreement to merge in an all-stock transaction. As a result, Urgently will enter Nasdaq at the expense of Otonomo, with the stock to be listed under the ticker symbol “ULY”.

Upon closing of the transaction, which has been approved by each company’s board of directors, holders of Otonomo’s ordinary shares will receive common stock of Urgently. Otonomo’s shareholders and other equityholders will own, in the aggregate, approximately 33% of the combined company on a fully diluted basis, subject to the determination of the final exchange ratio pursuant to the terms set forth in the definitive agreement. The transaction is expected to close in the third quarter of 2023, subject to the approval of Otonomo’s shareholders and the satisfaction of other customary closing conditions.

Otonomo went public via a SPAC merger in the summer of 2021 at a $1.3 billion valuation. Today, its market cap is just over $70 million. The Israeli-based startup raised around $230 million from a variety of investors such as Bessemer Venture Partners, LocalGlobe, Avis, and Hearst Ventures.

Founded in 2013, Urgently provides technology to help connect car owners with roadside assistance services and it raised over $100 million in equity and debt. Urgently’s 2022 revenue is estimated at more than $185 million.

“This transaction enables us to transform the current reactive roadside experience and deliver on the promise of connected mobility. The addition of Otonomo’s mobility data uniquely positions Urgently to capitalize on the connections between vehicle data and the fleet, insurance and roadside assistance sectors to provide real-world services that will improve customer experiences and safety.” – Matt Booth, CEO of Urgently.

”Merging Otonomo and Urgently 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.” – Ben Volkow, CEO and co-founder of Otonomo.

Upon the closing of the transaction, Matt Booth will be CEO and Tim Huffmyer will be CFO of the combined company. Ben Volkow will join the Board of Directors and will have an advisor role with the combined company.