Boston-based weather intelligence specialist Tomorrow.io is set to go public following a merger with Pine Technology Acquisition, a special purpose acquisition company (SPAC) targeting businesses in the insurance-related technology (InsurTech) sector.
Upon closing of the merger, the newly combined company will operate as Tomorrow.io and trade on Nasdaq under the symbol ‘TMW’. Tomorrow.io is a high-growth Software as a service (SaaS) company backed by sophisticated technology.
In 2020, weather events caused losses of more than US$100bn in the USA. Spending on weather and climate services will reach an estimated US$190bn by 2030, up from an estimated US$89bn in 2020, based on actual and forecast compound annual growth rates (CAGR).
Tomorrow.io’s mission is to help countries and businesses prepare for the business impact of weather by automating decision-making and enabling climate adaptation at scale. Its Weather and Climate Security Platform delivers operational weather insights for global customers across a broad range of industries, including aviation, energy, insurance, on-demand companies, professional sports and venues, and logistics, as well as government agencies around the world.
By leveraging the platform’s proprietary weather intelligence, which uses machine learning to translate hyperlocal forecasts into actionable insights, users can proactively address weather- and climate-related challenges.
Shimon Elkabetz, co-founder and CEO of Tomorrow.io, said, “Tomorrow.io was founded with the mission to improve global access to weather intelligence for all. Today, this mission is more important than ever against the backdrop of a changing climate. Every individual, business and government is embracing climate adaptation and mitigation. This is exactly the solution that Tomorrow.io provides – a unique software offering that translates the weather forecast into insights for any industry, allowing customers to proactively prepare for the impact of incoming weather across their operations. We are thrilled to partner with Pine Technology to accelerate our product development and plans for a global satellite constellation.”
To advance weather and climate forecasting on a global scale, Tomorrow.io is developing a constellation of radar-equipped satellites, with initial launches planned for late 2022. The satellites are expected to provide the first-ever global precipitation data set updated hourly along with other critical weather and ocean parameters.
Tomorrow.io believes this dramatic increase in monitoring capabilities will enable better forecasts everywhere, especially in data-sparse areas that currently lack reliable forecasts yet are the most vulnerable to weather fluctuation and climate change.
Pine Technology brings decades of transaction execution expertise and valuable strategic counsel to Tomorrow.io. Adam Karkowsky, non-executive chairman of Pine Technology, said, “Shimon and the impressive Tomorrow.io leadership team have deep expertise in weather, radar technology and decision-support software. They have built a vertically integrated company that delivers exceptional value to their global commercial and government customers. Tomorrow.io is leading the way with its world-class weather forecasting operation and modern SaaS-based approach to meet the growing need for weather and climate security. With our experience supporting high-growth companies and our vast network of contacts that offer new customer opportunities, we believe we can help deliver long-term value for all stockholders.”
The pro forma equity value of the combined company is approximately US$1.2bn, assuming no redemptions by Pine Technology stockholders. The transaction will provide up to US$420m of gross proceeds, before deducting transaction expenses and assuming no redemptions, including US$75m through a fully committed private investment in public equity (PIPE) at US$10 per share.