British auto data start-up Wejo in talks to go public in $2 bln SPAC deal -sources
05/03/2021 20:32
By Ben Klayman and Anirban Sen
March 5 (Reuters) - Wejo is closing in on a deal to go
public through a reverse merger with a blank-check company that
would value the British connected car data start-up at more than
$2 billion, two people familiar with the matter said.
Wejo, which organizes data from about 15 million connected
vehicles for such clients as General Motors Co GM.N , Hyundai
Motor Co 005380.KS and Daimler DAIGn.DE , is still working to
finalize a deal with a special-purpose acquisition company, or
SPAC, said the sources, who asked not to be identified.
The Manchester-based company is being advised by Citigroup
C.N , the sources said.
Wejo declined to comment.
SPACs are shell companies that raise funds to acquire a
private company with the purpose of taking it public, allowing
such targets to sidestep a traditional IPO to enter public
markets.
Wejo estimates that by 2030, 72 million new vehicles sold
worldwide will be connected, creating an opportunity for revenue
streams and more services for automakers and their customers, as
well as greater efficiency for companies in product development.
Wejo's technology platform, ADEPT, allows automakers to organize
the data collected in those vehicles.
The company is led by Chief Executive and founder Richard
Barlow and Chairman Tim Lee, a former GM executive.
Founded in 2014, Wejo, which stands for "we journey," has
raised $157 million according to PitchBook from such investors
as GM, which acquired a significant stake in 2019, German auto
supplier Hella HLE.DE , DIP Capital and the British government.
On Feb. 1, Wejo's Israeli rival Otonomo said it would go
public through a merger with a SPAC, Software Acquisition Group
Inc II SAII.O , at a valuation of $1.4 billion. urn:newsml:reuters.com:*:nL4N2K73AI
(Reporting by Ben Klayman in Detroit, Anirban Sen in Bengaluru;
Editing by Chizu Nomiyama)
((benjamin.klayman@thomsonreuters.com; 313-600-2277; Reuters
Messaging: benjamin.klayman.thomsonreuters.com@reuters.net))