Publicly listed mobility data provider Wejo entered into a definitive business combination agreement to combine with special purpose acquisition company (SPAC) TKB Critical Technologies 1 (TKB). The deal is expected to close in Q2 2023 and is subject to closing conditions. Upon closing, the combined company will retain Wejo’s ticker symbol and will continue to trade on Nasdaq.

The company expects to generate gross proceeds of up to USD 100 million through an anticipated private investment in public equity (PIPE) raise and with funds from TKB’s trust. The company will look for short-term bridge capital funding until the transaction closes.

The company intends to use the funds to support its growth, fund strategic goals, and reach cash breakeven by mid-2025.

During its recent Q3 2022 earnings release, Wejo noted that its revenue for the quarter was up by more than 600% YoY, total contract value was up by over 70% YoY, annual recurring revenue was up by 63% YoY, and total customers were up by over 80% YoY. The company anticipates revenue growth to range between 200–300% and revenue to be in the range of  USD 20–30 million in 2023. Its operating cash burn is expected to be in the range of USD 60–70 million in 2023—significantly lower than that of 2022.

Other recent business highlights include expanding the company’s insurance offerings with Ford, teaming up with Capital Broadcasting Company on infotainment insights, and partnering with Microsoft on its Connected Fleets initiative.

Analyst QuickTake: Today’s SPAC deal is Wejo's second, following its first with SPAC Virtuoso Acquisition Corp which took the company public in November 2021. The deal generated cash proceeds of around USD 226 million at the time.