Manchester-based Auto data startup Wejo, backed by US giant General Motors, will go public through a reverse merger with blank-check company Virtuoso Acquisition Corp. With this deal, the British company will be valued at $800 million. The $800 million enterprise value for Wejo implies an estimated $1.1 billion pro forma equity value.
Wejo’s deal with Virtuoso Acquisition Corp will raise $330 million in proceeds, the companies said. The agreement includes $230 million from Special-Purpose Acquisition Company (SPAC) Virtuoso and another $100 million referred to as Private Investment in Public Equity (PIPE). An extra $25 million could also be raised within the next month.
Richard Barlow, chief executive and founder of Wejo, said: “The team at Virtuoso champions our vision to transform connected vehicle data into data for good, and we are proud to establish the market standard for collecting and aggregating that data. Insights developed by our data will make mobility safer, smarter, and more sustainable.”
Backed by General Motors & Palantir Technologies
Investors in the PIPE include General Motors and data management company Palantir Technologies Inc, which billionaire Peter Thiel co-founded. The sizes of their investments or stakes have not been disclosed.
Wejo’s existing shareholders will roll 100 percent of their existing equity into the combined company and will own approximately 64 percent of the issued and outstanding shares immediately following the closing of the business combination. The boards of Virtuoso and Wejo have each unanimously approved the proposed transaction, which is expected to close during the second half of 2021.
Jeffrey D. Warshaw, chairman and chief executive of Virtuoso Acquisition Corp said, “Wejo is uniquely positioned to set the industry standard and realize the extraordinary potential in connected vehicle data, and we are confident that Wejo’s innovative platform, strong leadership, and proprietary data sets will set the company apart as the market for connected vehicles and their data continues to grow.”