Munich Re said it will acquire relayr, an Internet of Things-focused software company the reinsurer claimed is valued at $300 million.
The acquisition is taking place through Munich Re subsidiary Hartford Steam Boiler, which has been working with the startup since 2016. Plans call for closing the deal within the next four to six weeks, pending regulatory approvals.
Munich Re declined to disclose the actual purchase price.
Greg Barats, president and CEO of HSB, has been responsible for much of Munich Re’s IoT strategy. He said the acquisition is an “ideal addition” to Munich Re’s capabilities.
The company’s technology and services “will help us to rapidly implement our global strategy to develop new IoT [products and services] for our clients,” Barats noted in prepared remarks. “Digital transformation in the industrial and commercial sectors offers opportunities for new services and financial applications.”
Munich Re said that its IoT strategy continues to be based on a combination of building in-house products and services, cooperating with partners, and acquiring IoT expertise.
Relayr’s venture capital investors include Munich Re/HSB, Kleiner Perkins Caufield Byers and Munich Venture partners, according to the company’s website. It employs about 200 people based in seven cities in the U.S., U.K., Germany and Poland, and is based in Berlin. What Munich Re/Hartford Steam Boiler is getting with its acquisition: “middleware” and IoT services for companies in various industries seeking to digitize their businesses. Services include technology consultations and overseeing implementation/supporting newly digitized operations. The company’s claim to fame is a platform designed for companies to help them connect new and legacy hardware/software in order to extract and analyze data from physical objects such as machines and equipment, Munich Re said.
By doing so, relayr technology can help determine when a machine may fail, enabling preventative maintenance. The pitch is that relayr’s IoT technology can help companies improve their processes, boost profitability, cut costs, boost energy efficiency and enhance product quality.
While relayr will continue to operate autonomously, Munich Re has plans to expand the company’s market focus beyond its current small and medium-sized customer service base. Relayr sells its products and services directly, in cooperation with consulting partners, and indirectly via technology companies.
Source: Munich Re
*A version of this story ran previously in our sister publication Insurance Journal