Reinsurer Munich Re has agreed a $300 million deal to buy relayr, a Berlin-based Internet of Things (IoT) startup that helps industrial companies extract valuable data from their machinery.
Relayr's IoT platform helps clients hook up physical objects such as machines and equipment with sensors that can then extract and analyse data to improve processes and profitability.
For example, the company says that its technology makes it possible to determine when a machine is likely to fail, prompting firms to conduct maintenance to ensure that this does not happen.
Munich Re is buying relayr through its Hartford Steam Boiler (HSB) subsidiary, which has been working with the firms since 2016, helping it to add financial and insurance-related components to its platform.
Torsten Jeworrek, member of board of management, Munich Re, says: "The Internet of Things is already changing our world and has the potential to disrupt the traditional insurance and reinsurance industry through new business models, services and competitors.
"This acquisition is a clear example of our strategy: we are combining our own knowledge of risk, data analysis skills and financial strength with relayr’s technological expertise. This is our basis to develop new ideas for tomorrow’s commercial and industrial world."