Otonomo, a publicly-listed Israeli startup offering a vehicle data platform, has entered a reverse merger agreement with Urgently, a US-based provider of digital roadside assistance services, to merge in an all-stock transaction that would make Urgently public. The deal is expected to close in Q3 2023.

As per the deal, Otonomo will become a wholly-owned subsidiary of Urgently, and Urgently and Otonomo’s shareholders will own 67% and 33% of the combined company, respectively.  Once the deal is closed, Otonomo’s shares—which currently trade under the OTMO ticker on Nasdaq—will start trading under the ULY ticker symbol.

The companies plan to amalgamate their technology platforms—such as data processing and analytics, connected insurance, mobility assistance network management, and service delivery—to create cross-selling revenue opportunities and cost savings.

Otonomo has been listed on Nasdaq since August 2021, via a merger with a special purpose acquisition company (SPAC), that valued the combined entity at USD 1.4 billion. However, its market capitalization reportedly dipped to USD 1.1 billion by the end of the first trading day, bringing its present market capitalization to a little more than USD 70 million. The company is yet to report its full-year 2022 earnings; however, in Q3 2022 , it reported revenues of USD 2 million and an annual recurring revenue (ARR) of USD 6.7 million during the quarter.

Urgently is a roadside assistance and mobility assistance technology provider backed by companies like BMW i Ventures, Porsche Ventures, Jaguar Land Rover’s InMotion Ventures, American Tire Distributors, Iron Gate Capital, and Emerald Technology Ventures. The company estimates its revenue to be USD 185+ million in 2022, up 25% YoY.