German reinsurer Munich Re acquired IoT middleware startup Relayr for $300 million
German reinsurer Munich Re has acquired internet of things (IoT) middleware startup Relayr in deal worth $300 million. The acquisition was done through Munich Re’s subsidiary, Hartford Steam Boiler (HSB) and will help advance the company’s IOT strategy. The joint business model will develop solutions for clients, offering not only technology but also risk management, data analysis and financial instruments. The deal highlights the growing links between financial service providers and technology companies. With the acquisition, the companies will actively shape opportunities in the fast-growing IoT market.
Founded in 2013 by Harald Zapp, Harald Zapp, Jackson Bond, Michael Bommer, and Paul Hopton, Relayr offers end-to-end commercial and industrial IoT solutions. The startup delivers complete solution for risk-free digital transformations and unleash data insights from existing equipment, machines and production lines to improve our customers’ business outcomes. Relayr also enables industrial companies to shift from CAPEX to OPEX-based offerings to their respective markets, providing an unique combination of first class IIoT technology and it’s delivery with powerful financial and insurance offerings — all from a single source trusted by hundreds of companies worldwide.
While becoming part of Munich Re, Relayr will continue to operate independently to maintain its distinct company culture, drive innovation and attract IoT talent. As part of the Munich Re/HSB network, relayr will benefit from the group’s stability and financial strength, access to new prospects through the group’s large client base and financial engineering expertise that will help create new solutions.
“IoT is already significantly changing our world and has the potential to disrupt the traditional insurance and reinsurance industry through new business models, services and competitors,” said Torsten Jeworrek, member of Munich Re’s board of management. “I am truly happy to announce this acquisition, as it supports our strategy to combine our knowledge of risk, data analysis skills and financial strength with the technological expertise of relayr. This is our basis to develop new ideas for tomorrow’s commercial and industrial worlds.”
Relayr has partnered with HSB and Munich Re since 2016. With the acquisition, relayr will further strengthen its financial and insurance offerings while expanding through the group’s large client base and leveraging its domain expertise to further grow its business.
Greg Barats, President and CEO of HSB, and responsible for Munich Re’s IoT strategy: “HSB has always focused on insurance and technology. Back in 2016, HSB invested in relayr in an effort to harness the strategically significant business potential offered by IoT. relayr’s end-to-end IoT solutions for the industrial and commercial sectors are an ideal addition to our Group’s capabilities. relayr will help us to rapidly implement our global strategy to develop new IoT solutions for our clients. Digital transformation in the industrial and commercial sectors offers opportunities for new services and financial applications.”
From an initial consultation on the right technology through to overseeing implementation and supporting operations, relayr offers industrial companies seeking to digitalise their business a comprehensive range of services. By way of 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. This makes it possible to determine when a machine is likely to fail, for example, and conduct maintenance to ensure that this does not happen. With relayr’s IoT solutions, companies can obtain critical business data which can be used to improve processes and thus profitability. Costs can be cut, energy efficiency increased, and product quality improved, to name just a few. Since it began to cooperate with HSB in 2016, relayr’s offering has been supplemented by financial and insurance-related components.
The acquisition will put relayr in the position to evolve its innovative value stack, enabling new revenue models, cost reducion, and increased effectiveness across industries. Relayr will maintain its current focus on providing first-class IIoT technology solutions to deliver business outcomes to a growing customer base. Furthermore, the acquistion will also underpin relayr’s position as a long-term business partner.
“We are delighted to strengthen our relationship with Munich Re/HSB to push digitalization in commercial and industrial markets and strive for our mission to help commercial and industrial businesses stay relevant,” said Josef Brunner, CEO of relayr. “The unique combination of the companies demonstrates the importance to deliver business outcomes to customers and the need to combine first-class technology and its delivery with powerful financial and insurance offerings. This transaction is a great opportunity to build a global category leader.”