Otonomo Technologies Ltd., a publicly traded provider of vehicle data, will merge with privately held startup Urgently Inc. in an all-stock transaction.

The merger was announced on Thursday. Otonomo shareholders are set to receive an approximately 33% stake in the combined company. Urgently’s investors, which include Jaguar Land Rover Ltd. and other major automakers, will have a 67% stake.

Israel-based Otonomo provides a software platform that helps companies collect and process sensor data from connected vehicles. In its raw form, such data is often difficult to use. To ease the task, its platform not only collects sensor logs but also filters erroneous information and organizes the remaining data into a format that simplifies analysis. 

Otonomo says its platform supports a variety of use cases. A delivery company could collect data about its vehicle fleet, such as the amount of time each truck takes to reach its destination, and find route optimization opportunities. Municipalities, in turn, can use it to map out traffic patterns and plan road upgrades.

The platform also provides the ability to collect data about potential vehicle malfunctions and accidents. According to the startup, the data collected by its platform can be used to identify when a driver may require roadside assistance. Its malfunction and accident detection features play a major role in its newly announced merger with Urgently.

Vienna, Virginia-based Urgently operates a roadside assistance platform of the same name. When an Urgently customer requests assistance, the startup’s platform can automatically route the request to a nearby technician from its partner network. The startup also collects data about the incident that can be used by insurers.

According to Urgently, the planned merger with Otonomo will help improve its roadside assistance platform. The startup envisions using Otonomo’s features for collecting vehicle malfunction data to streamline maintenance operations. Additionally, it believes such data could be used to expedite insurance claim processing. 

Urgently generated $185 million in revenue last year, 25% more than in 2021, and the merger is intended to boost that. In particular, the combined company will promote Urgently’s software to Otonomo customers and vice versa to unlock new sales opportunities.

“This transaction enables us to transform the current reactive roadside experience and deliver on the promise of connected mobility,” said Urgently Chief Executive Officer Matt Booth. “The addition of Otonomo’s mobility data uniquely positions Urgently to capitalize on the connections between vehicle data and the fleet, insurance and roadside assistance sectors to provide real-world services that will improve customer experiences and safety.”

The transaction is expected to close in the third quarter. From there, Otonomo will become a subsidiary of Urgently, which is set to trade on the Nasdaq under the ticker symbol “ULY.” Urgently will continue to be led by Booth and current Chief Financial Officer Tim Huffmyer.

Image: Otonomo