Saudi-based Mithaq Capital has increased its small stake in the Israeli autotech company Otonomo Technologies (Nasdaq: OTMO) and has now reported to the US Securities and Exchange Commission (SEC) that it holds a 20.4% stake. Otonomo’s stock price has fallen 90% since it completed its SPAC merger last August and began trading on the Nasdaq.
Mithaq is now a stakeholder in Otonomo and has the right to discuss strategy, governance and business with representatives of the Israeli company. Mithaq says he could increase or decrease his stake in Otonomo, but at this stage he has no intention of increasing his stake above 25%.
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Mithaq is already the main shareholder of the Israeli company adtech International earthquake (Nasdaq: TRMR; LSE: TRMR), led by CEO Ofer Druker, with a 22% stake.
Otonomo was founded by CEO Ben Volkow. The company provides a platform and trading arena for data gathered from connected cars and is currently listed on Nasdaq with a market capitalization of $93 million, having started trading last August with a company valuation of $1.26 billion. Otonomo’s market capitalization is less than the $197 million in cash it has in its coffers.
In February 2021, shortly after Otonomo announced that it had entered into a SPAC merger agreement with Software Acquisition Group, Mithaq purchased shares of SPAC and, post-merger, owned 5.2% of Otonomo. The Saudi company announced in February and March this year that it had increased its stake to 10.1% and has now doubled that stake.
Mithaq Capital is part of Riyadh-based Mithaq Holdings. Other major Otonomo shareholders are Bessemer Ventures 14.6%, CEO Ben Volkow (12.4%), StageOne Ventures (8.5%), Aptiv Financial Services (7.1%), Senvest (6.3 %) and Avner Cohen (5.3%).
Since completing its SPAC merger, Otonomo has made two acquisitions: Israeli behavioral analytics company Neura for $50 million in October 2021, and British mobility intelligence company The Floow for $69 million in February. 2022.
Published by Globes, Israel business news – en.globes.co.il – on July 26, 2022.
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