Israeli Startup Otonomo Nearing Merger With Software SPAC

(Bloomberg) -- Otonomo, an Israeli startup that operates a data platform linked to millions of connected cars, is in talks to go public through a merger with Software Acquisition Group Inc. II, according to a person with knowledge of the matter.

The special purpose acquisition company is in talks to raise new equity to support a transaction that could be announced as soon as next week, said the person, who requested anonymity because the information isn’t public. The deal size couldn’t immediately be learned and it’s possible that, as with any deal that isn’t finalized, talks could collapse.

A representative for Software Acquisition Group declined to comment. Representatives for Otonomo didn’t immediately respond to requests for comment.

The SPAC’s shares rose 18% in after-hours trading on Friday.

Otonomo, led by Chief Executive Officer and founder Ben Volkow, takes over 4 billion data points per day from more than 22 million connected vehicles, according to its website.

The data is used for emergency services, mapping, parking and predictive maintenance, and partners include BMW AG, Daimler AG, Mitsubishi Motors Corp. and Mercedes-Benz.

The company last year raised fresh capital from investors including SK Holdings Co., Avis Budget Group, Maniv Mobility, Alliance Ventures and Bessemer Venture Partners. It was valued at about $465 million after that funding round, PitchBook data shows.

Software Acquisition Group, led by CEO Jonathan Huberman, raised $172.5 million in a September initial public offering and said at the time that it intends to focus its search on software companies.

Huberman’s first SPAC in October merged with CuriosityStream Inc., a media company that specializes in documentaries, among other features.

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