Usage Based Insurance (UBI) technology provider DriveFactor, Inc., was acquired by an undisclosed strategic buyer for approximately $22 million.
The company created join 2010 and based in Richmond, Virginia, was providing the tools enabling UBI via a smartphone app. Customers of DriveFactor included Direct Auto (US), Tower Insurance (New Zealand), Bell Car Insurance (Admiral Group – UK).
Investors in DriveFactor included Safeguard (41% ownership) and QED Investors. Safeguard indicated in a press release that the sale is representing an approximate 2x cash-on-cash return.