Insurance giant Munich Re buys internet of things company Relayr in $300m deal
Insurer Munich Re announced today the acquisition of tech company Relayr which focuses on the “internet of things” in the industrial sector.
The deal values the company at $300m (£233m) and is part of Munich Re’s move to create new business models in the industrial internet of things sector.
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Relayr provides services to industrial companies looking to digitise their business.
These include platforms which can be used by companies to connect hardware and software to extract and analyse data from objects such as machines and equipment.
The data can then be used to help determine when a machine needs fixing or if it is likely to fail.
Munich Re management board member Torsten Jeworrek said: “The internet of things is already changing our world and has the potential to disrupt the traditional insurance and reinsurance industry through new business models, services and competitors.
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“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. This is our basis to develop new ideas for tomorrow’s commercial and industrial world.”
Although Relayr will become part of Munich Re it will continue to operate autonomously and the company said it will “retain its distinct start-up culture” in order to drive innovation and attract talent.
The transactions is subject to regulatory approval and is expected to close within the next four to six weeks.