Munich Re acquires IoT player Relayr
Via its subsidiary Hartford Steam Boiler (HSB), Munich Re will acquire internet of things (IoT) company Relayr.
“IoT is already changing our world and has the potential to disrupt the traditional insurance and reinsurance industry”
Relayr is valued at $300 million and HSB will hold 100% of the shares upon completion.
Torsten Jeworrek, member of Munich Re’s board of management, says: “IoT is already changing our world and has the potential to disrupt the traditional insurance and reinsurance industry through new business models, services and competitors.”
Jeworrek adds: “This acquisition is a clear example of our strategy: we are combining our own knowledge of risk, data analysis skills and financial strength with Relayr’s technological expertise.”
The joint business model will develop solutions for clients, offering technology, risk management, data analysis and financial instruments.
As an example, Relayr has developed a platform which can be used by companies to connect new and legacy hardware and software to extract and analyse data from physical objects such as machines and equipment.
Since it began to cooperate with HSB in 2016, Relayr’s offering has been supplemented by financial and insurance-related components.
Relayr sells its solutions directly, in cooperation with consulting partners, and indirectly via technology companies.
Though part of Munich Re, Relayr will continue to operate autonomously and will retain its “distinct start-up culture in order to drive innovation and attract IoT talent”.
The company has around 200 employees working in offices in seven cities in the US, UK, Germany and Poland.
Jeworrek explains: “I am really excited to welcome Relayr’s employees to our group.” So it seems there are no reduancies.
The closing of the transaction is subject to regulatory approvals, which are expected to be obtained within the next four to six weeks.
