Roadzen Agrees To Acquire VehicleCare

(RTTNews) - Roadzen Inc. (RDZN), an Insurtech company, Tuesday announced that entered into a definitive agreement to acquire VehicleCare, an AI-powered vehicle repair and workshop aggregation platform.

The deal is structured as an equity issuance at Roadzens India subsidiary level to VehicleCares shareholders, with Roadzen India subsidiary shares surmised to be valued around $277 million, to be issued as consideration, resulting in approximately 2 percent dilution at the India subsidiary level.

The acquisition is not expected to dilute at the Nasdaq listed parent company level and the company in question will continue to retain approximately 91 percent ownership of the India subsidiary once the transaction closes.

Further, this deal is expected to add nearly $10 million in revenue over the next twelve months post-closing and integration and the company expects this acquisition to be profitable under GAAP accounting rules.

VehicleCares national network in India consists of 350+ independent workshops across 21+ states, serving 15+ insurers, 15+ brokers, and 10+ fleet operators, and has executed over 40,000 claims, achieving over 30 percent reduction in loss cost versus OEM garages, to date.

This execution layer is expected to enable Roadzen to offer insurers repair timeline guarantees, a capability that has historically been difficult to deliver reliably at scale, the company said in statement.

In pre-market activity, RDZN shares were trading at $2.39, up 0.78% on the Nasdaq.