London Stock Exchange welcomes its first InsurTech IPO

Last week, the London Stock Exchange welcomed its first InsurTech company. The company results from the reverse takeover agreed between Spinnaker Acquisitions (SPAQ) (“Spinnaker) and HomeServe Labs Ltd (“Labs”), a subsidiary of FTSE 250 consistent, HomeServe PLC. A name change from Spinnaker Acquisition (“Spinnaker”) to Ondo InsurTech Plc (ONDO) is planned in due course.

Spinnaker raised around £3.4m in placements and subscription and, as per its company announcement on 13 December 2021, agreed to acquire the entire issued share capital of Labs, by way of a reverse takeover.

The company's flagship product is the LeakBot, an intelligent water security system for the detection of micro-leaks in residential properties. As of today, there are 39,000 registered LeakBot devices supplied to partners.

Water damage is the number one source of claims on residential properties in the 97 million households in LeakBot’s target markets, resulting in significant waste of building materials, which often must be stripped out and sent to landfill. This accounts for approximately 30% of claims paid in the UK and USA, and over $17 billion of claims annually across the two countries.

The team combines market experience and innovation, with Craig Foster as

Chief Executive Officer; Mark Wood as Non-Executive Chairman, and Spinnaker's Andy Morrison and Stefania Barbaglio will continue to serve on the board as Non-Executive Directors.

The global InsurTech market offers multiple opportunities for growth and is expected to reach a value of over $10 billion by 2025, with growth of more than 10% from 2019 to 2025 (source: [insert]).

Disruptive technologies such as Internet of Things (IoT), artificial intelligence (AI) and blockchain are poised to add value and efficiency to insurance mechanisms and become widely adopted by insurance companies.

In 2020, UK InsurTech companies received investment totalling $361m, an increase of more than 60% on the previous year.

CEO Craig Foster said:

“We are thrilled to be the very first InsurTech IPO in London and we are very excited about the opportunity ahead. LeakBot is a great solution to a huge global problem for the environment, for homeowners and for the insurance industry, and we look forward to growing the business as Ondo InsurTech Plc”

Commenting on the transaction, Mark Wood CBE, Non-Executive Chairman, said:

“Fitting a 'Leakbot' is as logical as having a lock on the front door; and the installation a lot simpler! We can see our technology quickly becoming a standard feature of the household policies offered by leading insurers. Hence our decision to list on the London Stock Exchange through this transaction.”

Andy Morrison from SPAQ added:

“The acquisition of LeakBot Ltd to form Ondo Insurtech Plc is precisely in line with the strategy that we set out, to seek an acquisition in the green economy space. Ondo is a real-world business with an exciting growth pipeline, and it arrives on the public market at a time when ESG opportunities have never been more needed.”

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