O’Melveny Represents United Electronics in its Investment in UK Telematics CompanyMarch 14, 2017
FOR IMMEDIATE RELEASE
BEIJING—MARCH 14, 2017—O’Melveny represented United Electronics Co., Ltd. (UEC), a Beijing-based information technology services provider listed on the Shenzhen Stock Exchange, as a co-investor in The Floow. The £13 million investment closed on March 3, 2017.
As a leading telematics data management company, The Floow supports the motor insurance and automotive industries through device-agnostic predictive analytics and digital end-user services.
The O’Melveny team was led by partner Ke Geng and counsel Ke Zhu.
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O’Melveny & Myers LLP
The following press release was issued by Floow:
FOR IMMEDIATE RELEASE
£13m Investment for Technology Firm The Floow
on 06 March 2017
Innovative telematics technology provider announces investment from international corporate investors
Today, innovative telematics technology provider The Floow has confirmed that it has received £13m equity investment that will further accelerate the company’s strong momentum and global growth.
The announcement sees leading China-based investment group Fosun put forward the majority of the funds, with investors United Electronics Co., and Direct Line Group also involved in the transaction.
The Floow is one of the largest independent computer and data science organisations in the global telematics industry focused on individual mobility. Telematics insights provided by The Floow help transform the insurance operating model from transactional to one based on relationship and service.
Existing investor Direct Line Group, the UK’s leading personal motor and home insurer, as well as leading Chinese investment group, Fosun, and United Electronics Co., have invested a total of £13m (€15.2m and $16.4m equivalent) in exchange for a minority economic interest in The Floow.
The investment will support the strategy of the leadership team led by founder and CEO Aldo Monteforte, which is focused on delivering the insurance industry’s best predictive analytics and enriching end user experience to the point of mass market adoption.
The news comes in the week when the company celebrates its fifth anniversary – having expanded from a core team of three to a total of more than 70 members of staff since it was established in February 2012. The investment also puts the company on track to double its workforce.
Aldo Monteforte said: “Just five years from its foundation The Floow is now a leading provider of telematics data services to the global insurance industry, and today my management team and I are proud to have reached agreement for the completion of a meaningful financial investment that is aimed at accelerating the company’s momentum and global growth.
“This is a major milestone in our journey to make The Floow the best work place for all who aspire to harness sensors, software and data in pursuit of smarter and safer mobility.”
Prime Minister Theresa May said: “Today’s announcement of a £13m investment into Sheffield’s thriving tech sector by three firms, including foreign investors, demonstrates the faith they have in the future of Sheffield.
“It’s great news for The Floow, which will be able to use the cash to double its workforce and carry on expanding the cutting-edge car safety technology that has seen it create 70 high skilled jobs in the city.”
“But it’s also great news for the rest of Sheffield, as it clearly shows that the city is open for business.”
Mr. Liang Xinjun, Vice Chairman and CEO of Fosun Group said: “The insurance-oriented integrated financial gene of Fosun has been rapidly evolving and developing. Fosun has formed a comprehensive insurance platform and developed our ‘Insurance+’ strategy, while InsurTech is one of the important pillars.
“We are very pleased to join forces with The Floow and its team and we are looking forward to supporting the company’s business and development with our resources. The insurance industry will continue to experience rapid change and The Floow as an innovative technology company can play an important role in our insurance platform. ”
Fosun Group was founded in 1992 in Shanghai. Fosun International Limited (00656.HK) was listed on the main board of the Hong Kong Stock Exchange on July 16, 2007. Fosun Group is now a leading investment group taking roots in China with a global foothold. Fosun Group has been persistently investing in China’s growth momentum and focusing on investments in industries related to health, happiness and wealth. It endeavours to build an ecosystem of its businesses and continues to refine the strengths of its products. It has been actively implementing its investment model of “Combining China’s Growth Momentum with Global Resources” and always adhering to the value-investing philosophy, aspiring to becoming a world-class investment group.
UEC Group Limited (UEC) – UEC (002642.sz), established in 2001, is a leading information technology company listed in Shenzhen Stock Exchange. UEC is using the latest technologies, such as Cloud Computing, IoT and Big Data, to help customers to realize the digitalization of core business and innovations from internal and external data resources. In 2015 The Floow signed a letter of intent with one of the company’s subsidiaries, Beijing CarSmart Technology Co (“CarSmart”), with the aim of seeing the firm deliver its bespoke telematics platform and analytics suite to CarSmart’s existing customer base.
Direct Line Group – The UK’s leading personal motor and home insurer, Direct Line Group owns brands such as Direct Line, Privilege, Churchill and Green Flag. In 2014 The Floow announced a 15% investment in the business from the insurer which was facilitated through a dedicated capital increase in the equity.
Aldo Monteforte, CEO of The Floow added: “We are delighted to welcome Fosun and UEC as new investors to The Floow, and to be continuing to build on our partnership with Direct Line Group which has re-invested.
“Individually and as a collective they have embraced our vision, engaged with our philosophy, respected our entrepreneurial drive and aspiration to retain control over the direction of the company; and we look forward to their support in our objective of furthering The Floow’s reputation as a global leader.
“As we venture into a new chapter of The Floow’s journey, my thoughts and gratitude go to all our staff members and to the many clients and partners worldwide who have selected us as their trusted provider of telematics technology and services. We look forward to working around the world to build products that protect human life and nurture well-being.”