Israeli startup Otonomo, which runs a vehicle data platform, said Monday it will go public on the Nasdaq at an implied value of $1.4 billion.
Otonomo will make the move by merging with a special purpose acquisition company, or SPAC, called Software Acquisition Group Inc. II. The SPAC is based in Las Vegas and went public last year, raising $172.5 million.
The deal is expected to net Otonomo some $307 million in cash and cash equivalents, the company said in a statement.
After the deal goes through, Otonomo will trade under the ticker “OTMO.” The SPAC currently trades on the Nasdaq as “SAII.”
Otonomo said it intends to use the cash proceeds from the deal to fund growth and enter new markets.
The deal is expected to close in the second quarter of 2021.
SPACs are shell companies that aim to raise capital by going public, then merge with and into an existing company, in a process that is generally easier and quicker than a traditional initial public offering. SPACs have been around for decades but have been a major market trend in the past year.
Israel’s Otonomo has developed a cloud-based platform that allows car companies, service providers and apps to share and integrate data generated by vehicles, such as speed, temperature and battery levels. The data can be anonymized to protect user privacy, Otonomo said.
The platform takes in over 4 billion data points per day from over 40 million vehicles, the company said. The platform is used by 16 vehicle manufacturers and over 100 service providers, the company said.
Organizations and businesses can use the data for fleet management, insurance purposes, in-vehicle management, emergency services, mapping, parking, maintenance, subscription services, traffic management and smart cities.
Otonomo was founded in 2015 and is based in Herzliya. Its headquarters and a research and development center are in Israel and it has offices in San Francisco and Frankfurt, Germany.