Auto recordsdata startup Wejo explores SPAC merger with Virtuoso

(Reuters) — Wejo is in talks to transfer public by plan of a reverse merger with blank-test company Virtuoso Acquisition in a deal that will well perhaps worth the British linked car recordsdata open-up at better than $1 billion, two folk familiar with the matter mentioned.

The deal has now not closed and phrases would possibly maybe well perhaps additionally mute alternate, in accordance to the sources, who requested now not to be identified.

The perimeters additionally grasp now not closed a deal to make your mind up funding from investors to strengthen the deal, the sources mentioned. This fashion of funding, which is incessantly known as Non-public Investment in Public Fairness (PIPE), is in overall fundamental to cease an acquisition by a special-reason acquisition company, or SPAC.

Officials with Virtuoso and Wejo, which is backed by Long-established Motors, would possibly maybe well perhaps additionally now not without delay be reached to comment. Bloomberg earlier reported Virtuoso’s involvement.

SPACs are shell corporations that lift funds to produce a private company with the reason of taking it public, allowing such targets to sidestep a historical IPO to enter public markets.

The valuation would be a step down from the simpler than $2 billion that sources urged Reuters in March the corporate hoped to impact.

The SPAC market has cooled off lately amid fears of frothy valuations and final month the SEC suggested warrants issued by SPACs must always be accounted for as liabilities as antagonistic to fairness instruments.

Wejo organizes recordsdata from about 15 million linked vehicles for such purchasers as GM, Hyundai Motor and Daimler, and corporations can utilize the records to originate apps and providers and products for fleets, neat cities and particular particular person buyers.

Wejo is being urged by Citigroup and is led by Chief Executive and founder Richard Barlow.

Founded in 2014, Wejo has raised $157 million in accordance to PitchBook from such investors as GM, which got a most foremost stake in 2019, German auto vendor Hella, DIP Capital and the British authorities.

On Feb. 1, Wejo’s Israeli rival Otonomo mentioned it might well perhaps accelerate public in a SPAC merger with Tool Acquisition Neighborhood Inc II.