London-based leak prevention solution LeakBot has announced plans to go public via a reverse takeover with special purpose acquisition company (SPAC) Spinnaker Acquisitions.
The new company will launch on the UK’s main market with the name Ondo Insurtech Plc. LeakBot is an internet of things (IoT) company that detects water leaks in buildings with its patented Thermi-Q technology.
In its new form, it will focus on insurtech solutions for homeowners around the world. It builds on LeakBot’s partnerships with nine insurers including TopDanmark, Hiscox, and Direct Line across the US, UK and Scandinavia. LeakBot is a patented end-to-end solution to the huge global problem of domestic water leaks.
LeakBot aims to save water and reduce insurance costs by preventing excessive waste of building materials caused by unforeseen water damage. The IoT tech works by measuring both the air and water temperatures in homes. If there is a leak, it will create a consistent drop in temperature. LeakBot senses a prolonged and consistent drop in temperature and creates an alert to the problem. It can be purchased for £149.
“In a green economy space where hubristic plans and greenwashing are often seen, we are delighted to be working towards an acquisition that is neither of these,” said Andy Morrison, chairman of Spinnaker Acquisitions. “LeakBot is an established business and technology that taps into an existing insurance business model while making a practical contribution to avoiding waste. We were impressed from the start with the quality of management, and we look forward with confidence to completion and execution.”
Taking the SPAC route to a public market has become increasingly popular among technology companies because it is often quicker, bypasses regulatory processes, can lead to higher valuations and less dilution of shares. This year British used car marketplace Cazoo went public via a $7bn SPAC deal while health company Babylon went public for £3bn via a blank cheque company.
Craig Foster, CEO of LeakBot, said: “We have proven LeakBot’s efficacy following an extended period of product development and customer implementations in association with major UK, US and Nordic home insurers and are now excited to be entering a new phase of our journey with SPAQ and the continuing support of HomeServe to finance the roll out and adoption of LeakBot in our target markets where there are some 97 million addressable homes.”