Munich Re, via its subsidiary Hartford Steam Boiler (HSB), has acquired software firm relayr to advance its Internet of Things (IoT) startegy.
Relayr provides enterprise middleware and IoT solutions for the digital transformation of industries.
The deal values Relayr at $300m. The company will continue to operate independently to drive innovation and attract IoT talent.
Relayr employs about 200 people working in offices in seven cities in the US, UK,Germany and Poland. The company has partnered with HSB and Munich Re since 2016.
The deal will allow Relayr to further strengthen its financial and insurance offerings while extending via the group’s large client base and use its domain expertise to further expand its business.
Munich Re board management member Torsten Jeworrek said: “The Internet of Things is already changing our world and has the potential to disrupt the traditional insurance and reinsurance industry through new business models, services and competitors.
“This acquisition is a clear example of our strategy: we are combining our own knowledge of risk, data analysis skills and financial strength with relayr’s technological expertise. This is our basis to develop new ideas for tomorrow’s commercial and industrial world.”
Relayr, which currently focuses on small and medium-sized enterprises, sells its solutions directly, in cooperation with consulting partners, and indirectly through technology firms.
The contacts of Munich Re with industrial firms will help Relayr to expand in future.
The deal will allow Relayr to use Munich Re’s and HSB’s large client base and gain access to potential new customers.
Relayr CEO Josef Brunner said: “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.”
Munich Re, which was founded in 1880, provides reinsurance, primary insurance and insurance-related risk solutions. The company operates in all lines of the insurance business.