HARTFORD, Conn.--(BUSINESS WIRE)--HSB Group, Inc. (HSB), part of Munich Re, announced today the close of the acquisition of relayr, Inc., a global Industrial Internet of Things (IIoT) technology company.
HSB acquired 100 percent of relayr's shares and equity interests for $251.7 million in cash after accounting for the 15.51 percent of HSB's previous minority interest in the company. The transaction was funded through a capital contribution from Munich Re.
relayr provides IoT middleware, customized software and consulting to support the digital transformation of industrial and mid-sized commercial companies. The combination of relayr's customized IoT business outcome solutions backed by the financial assurance of Munich Re and HSB will fuel relayr's growth.
“There are tremendous opportunities to develop new insurance and other financial products that provide assurance to industrial and commercial companies looking to make significant investments in IoT,” said Greg Barats, president and chief executive officer of HSB. “This acquisition enables relayr to offer a unique combination of IoT consulting and software with the financial assurance of a warranty.”
relayr will report to Barats who is also global lead of Munich Re’s IoT business. The acquisition strengthens and broadens the technology expertise accessible to HSB and Munich Re to meet the growing demand for IoT solutions in the commercial and industrial market.
“We are delighted to strengthen our relationship with HSB to push digitalization in commercial and industrial markets and strive for our mission to help commercial and industrial businesses stay relevant,” said Josef Brunner, chief executive officer of relayr. “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.”
relayr focuses on creating “business outcomes” for its customers, including cost reduction, energy efficiency, quality improvement or business model change. relayr will retain its brand and will remain an independent entity within HSB Group while strengthening its partnership with the rest of the Munich Re family.
Hartford Steam Boiler (HSB), part of Munich Re, is a multi-line specialty insurer and provider of inspection, risk management and IoT technology services. HSB insurance offerings include equipment breakdown, cyber risk, specialty liability and other coverages. HSB blends its engineering expertise, technology and data to craft inventive insurance and service solutions for existing and emerging risks posed by technological change. Throughout its 150 year history HSB’s mission has been to help clients prevent loss, advance sustainable use of energy and build deeper relationships that benefit business, public institutions and consumers. HSB holds A.M. Best Company’s highest financial rating, A++ (Superior). For more information, visit www.hsb.com and connect on LinkedIn, Twitter and Facebook.
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the capital investment company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake to the 2017 Atlantic hurricane season. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies, cyberattacks, or pandemics. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.
relayr is a rapidly-growing IoT company providing enterprise middleware and IoT solutions for the digital transformation of industries. The company has around 200 employees working in offices in seven cities in the US, UK, Germany and Poland. relayr has won multiple awards highlighting the success and high recognition of the company – amongst others it was named “Hottest Internet of Things Startup” at the Europas Tech Startup Awards and won the McKinsey’s and Handelsblatt’s Spark Award for Best Digital Company. Learn more: https://relayr.io/en