The leading expert on global and lock risk solution company based out of Germany – Munich Re buys the IoT middleware startup Relayr for a whopping $300 million. Munich Re is one of the largest reinsurance companies in the world and hence, the move came as a surprise to many as both the businesses are not interrelated. This could be a move for Munich Re to diversify their business and venture into the telecommunication section. IoT and telecommunication are interrelated, and IoT is going to dominate the sector with its innovative technology. In fact, various global telcos have already started incorporating IoT technology and making the transition to be ahead in the race.
The Insights Into Relayr
IoT middleware startup company Relayr is based out of Berlin. Their middleware platform is helping industrial companies to get data insights from their production line. This is achieved by connection internet-connected sensors and edge devices. The more data insights a company has, the better product it can develop and increase the efficiency of the production line. As a matter of fact, many believe that the reason behind Munich Re acquiring Relayr is to get a hold on the customers in Germany by analyzing the data collected by these sensors and devices.
Relayr was founded in 2013 with the initial goal of helping software developers hack hardware. During that time, IoT was on the verge of breaking out. It started from startup-boot-camp and raised a crowdfunding for its hardware starter kit. Then it shifted its focus to cloud services platform and finally focused on industrial IoT as it was the buzzing thing back then. Its platform is now powering 130 businesses with end-to-end middleware solution along with device management and IoT analytics. The platform can work on the cloud as well on-premise depending on customer requirement.
What Munich Re Had To Say
Munich Re officially announced that their HSB subsidiary had acquired 100% of Relayr in a deal worth $300 million. They did not disclose whether it is a combination of cash and stock deal or just cash. The funds for the deal will come from the internal cash funds of the group. The company’s spokesperson also said that the deal would help them to utilize the opportunities available in the fast-growing IoT market. The company aims to combine risk management, financial instruments, and data analysis together. The management also feels that IoT is going to disrupt the traditional insurance and reinsurance industry in the coming future.