Israeli Car Data Platform Otonomo To Go Public At $1.4B Valuation

Israeli startup Otonomo, a company that has developed a data services platform for autonomous and connected cars, announced earlier this week that it will go public on the Nasdaq at a $1.4 billion valuation.

Otonomo will combine with a SPAC (special purpose acquisition company) called Software Acquisition Group Inc. II, a US publicly traded Nasdaq company from Las Vegas, which was publicly listed at $172.5 million.

The deal is expected to result in an excess of $307 million in cash and cash equivalents and will close in the second quarter of 2021. After the deal closes, Otonomo will trade under the ticker symbol “OTMO.”

The transaction “will enable Otonomo to reinforce its position as market leader, accelerate its go-to-market strategies and unlock new use cases and end markets,” a statement from the company said.

A SPAC is a shell corporation designed to take companies public without going through the traditional IPO (initial public offering.) While SPACs have been around for decades, the financial maneuver has gained popularity in recent months as the COVID-19 pandemic creates uncertainty in the IPO market, according to US market intelligence company CB Insights.

Founded in 2015, Otonomo is a connected car data platform that enables auto manufacturers, mobility service providers, and application developers to share and integrate car-generated data to make the driving experience safe, smart, and convenient.

Otonomo has a growing network of automotive OEMs that use its cloud-based platform which includes Fiat Chrysler, BMW, Mitsubishi Motors, and Daimler AG, as well as partnerships with US car rental company Avis Budget Group and software giant Microsoft to expand its range of services.

The company is based in Herzliya and has offices in Frankfurt, Germany and San Francisco, California.

The transaction is expected to result in excess of $307 million in cash