Wejo to Go Public: Palantir-Backed Data Company SPAC Deal

Wejo to Become Publicly Traded via SPAC Merger

Wejo, a startup specializing in connected vehicle data and supported by investments from both GM and Palantir, is preparing to enter the public market. This transition will be facilitated through a merger agreement with Virtuoso Acquisition Corp., a special purpose acquisition company (SPAC).

Deal Details and Valuation

The agreement, formally documented in a recent regulatory filing on Friday, establishes an enterprise valuation of $800 million for the resulting combined entity. This valuation incorporates existing debt obligations.

The transaction is projected to generate $330 million in proceeds for Wejo. This figure comprises a $230 million cash infusion from Virtuoso, alongside a $100 million private investment in public equity (PIPE).

According to Wejo, Palantir and GM, both previous investors, played a key role in securing the funding for this deal. The specific investment amounts from these entities were not publicly disclosed.

Existing shareholders are expected to maintain a 64% ownership stake in the company following the completion of the merger, as detailed in the investor presentation.

Listing and Timeline

The completion of this transaction is anticipated in the third quarter of the year. Upon finalization, Wejo’s stock will be listed on the Nasdaq stock exchange.

Wejo’s Data Platform and Market Opportunity

Wejo collaborates with automotive manufacturers and Tier 1 suppliers to gather real-time data from vehicle-integrated sensors. This data is then processed through the company’s cloud platform, where it is aggregated, normalized, and subsequently shared with clients.

By the year 2030, Wejo forecasts a substantial connected vehicle data market valued at $500 billion. Within this, the serviceable addressable market is estimated at $61 billion, fueled by the anticipated proliferation of connected vehicles – projected to exceed 600 million globally.

Use of Proceeds and Future Growth

Wejo states that the capital raised through this transaction will completely fund its strategic plan for the next five years. This funding will be instrumental in accelerating several key growth initiatives.

• Faster onboarding of automakers and other original equipment manufacturers (OEMs).
• Continued development and deployment of new services.
• Expansion into previously untapped markets.

Image Credits: Screenshot/Wejo