Roadzen Inc. (NASDAQ: RDZN) shares began Thursday lower. The global leader in AI at the intersection of insurance and mobility, today announced the signing of a definitive agreement to acquire a leading technology-driven managing general agent specializing in short-term car rental insurance across Europe.
The acquisition is being made by Roadzen's India subsidiary, Roadzen Technologies Limited which is 92% owned by Roadzen Inc. Under the terms of the purchase agreement, the sellers may elect to receive equity in Roadzen India, based on a valuation of Roadzen India at approximately $280 million, or cash.
As a result, the transaction is not expected to be directly dilutive to Roadzen's NASDAQ shareholders. Total consideration is approximately $15 million — 50% payable at closing and 50% structured as a three-year earn-out contingent on milestones.
The business is one of Europe's leading technology-enabled specialists in the short-term car rental insurance market. It distributes through embedded API integrations with leading rental car partners across multiple European markets, alongside a direct-to-consumer platform.
The company writes approximately 800,000 policies annually and is expected to generate approximately $18–20 million in revenue and approximately $1.6–2 million in EBITDA in its current fiscal year, with no debt, positive free cash flow, and a lean team of around 20 people supported by its proprietary technology.
It is regulated in the European Union and the United Kingdom, backed by multi-year A-rated underwriting capacity, with a strong combined ratio.
RDZN shares down half a cent to $1.22.
