Partnerships / Acquisitions

German Reinsurer Munich Re Buys Tech Startup relayr For $300M

Munich Re announced that it is acquiring tech startup company relayr via its subsidiary Hartford Steam Boiler (HSB). The startup, which is valued at $300 million, offers industrial players end-to-end solutions in the area of Internet of Things (IoT) and digitalization.

“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,” Torsten Jeworrek, member of Munich Re’s Board of Management, said in a press release. “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.”

While relayr focuses on small and medium-sized businesses (SMBs), selling its solutions directly, Munich Re will connect relayr with its own contacts to enable the startup to grow. The joint business model will develop solutions for clients, offering technology as well as risk management, data analysis and financial instruments.

“We are delighted to be intensifying our relationship with Munich Re/HSB and working together to drive digitalization in commercial and industrial markets,” said Josef Brunner, CEO of relayr. “We help companies in those markets to successfully navigate disruption and stay relevant. The unique combination of our companies demonstrates the importance of applying first-class technology, and powerful financial and insurance offerings to deliver business outcomes to customers. This transaction is a great opportunity to build a global category leader.”

The company has around 200 employees located in the U.S., U.K., Germany and Poland and has won numerous awards, including “Hottest Internet of Things Startup” at the 2017 Europas European Tech Startup Awards.

Munich Re said that the closing of the transaction is subject to regulatory approvals, which are expected within the next four to six weeks.

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