Munich Re has closed its acquisition of relayr, an Internet of Things-related software company in which it had initially invested in 2016.

The acquisition, through Munich Re subsidiary Hartford Steam Boiler, ended up with a final price tag of $251.7 million in cash after accounting for the 15.51 percent of HSB’s previous minority interest in the company, according to the deal announcement.

A capital contribution from Munich Re helped fund the transaction.

Munich Re/HSB first announced in September that it was buying relayr, which provides IoT middleware, customized software and consulting support to help industrial and midsize commercial companies pursue their digital transformations.

The combination will help both companies address the demand for IoT-related products and services in the commercial and industrial market, the deal announcement asserts.

“There are tremendous opportunities to develop new insurance and other financial products that provide assurance to industrial and commercial companies looking to make significant investments in IoT,” Greg Barats, president and CEO of HSB, said in prepared remarks. “This acquisition enables relayr to offer a unique combination of IoT consulting and software with the financial assurance of a warranty.”

Josef Brunner, CEO of relayr, said that the acquisition offers his company “a great opportunity to build a global category leader.”

With the acquisition complete, relayr will report to Barats, who is also global lead of Munich Re’s IoT business.

Source: Munich Re/Hartford Steam Boiler