Purpose-built cash shell Spinnaker Acquisitions Plc (SPAQ) has conditionally agreed to acquire the entire issued share capital of HomeServe Plc subsidiary HomeServe Labs Ltd, which is currently trading as LeakBot.
An insurtech solution that can be provided by insurance companies free of charge to householders, LeakBot is protected by patents in Europe and the US. It plays a part in addressing water damage, which is said to be the number one source of claims on residential properties in LeakBot’s target markets.
For SPAQ chair Andy Morrison, LeakBot is an established business and technology that taps into an existing insurance business model while making a practical contribution to avoiding waste.
He stated: “We were impressed from the start with the quality of management, and we look forward with confidence to completion and execution.”
Meanwhile SPAQ noted: “While the terms of the proposed transaction have been agreed, the acquisition remains subject to the satisfaction of certain conditions, including inter alia: the approval of the required share authorities and other ancillary matters to be set out in a notice of general meeting by shareholders of the company; the successful completion of fundraising activities to be undertaken by way of a placing and direct subscriptions by new and existing investors; and relisting.
“Accordingly, there is no certainty that the proposed transaction will proceed.”
It was disclosed that the placing price and the balance between the cash, shares, and loan note elements of the consideration will be determined following the completion of fundraising activities being undertaken by SPAQ’s brokers.
If the reverse takeover proceeds, SPAQ will be renamed Ondo InsurTech Plc while its subsidiary HomeServe Labs Ltd will be known as LeakBot Ltd.
“We have proved 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 rollout and adoption of LeakBot in our target markets, where there are some 97 million addressable homes,” commented LeakBot chief executive Craig Foster.
The full terms of the agreement are expected to be set out in a prospectus, which will be published in due course.
