GoTo Global, an international multimodal shared mobility company, is merging with Neratech Media (TASE: NRTK), the two companies announced. The newly-formed company, to be called GoTo, will have a market cap value of $163 million, with current GoTo shareholders receiving 74 per cent of the merged company’s stock and the remaining 26 per cent going to Neratech shareholders.
GoTo, which currently operates in Israel, Germany, Spain and Malta, offers subscribers an array of vehicles – including cars, bikes, electric scooters and mopeds − via a single app. To date, GoTo’s 5,800 vehicles have been accessed by over 450,000 subscribers, with nearly three million rides reported in 2021.
The company anticipates that it will earn $35 million in revenue by year end, an increase of 58 per cent over 2021’s reported revenue of $22 million.
In recent years, a growing number of cities in Europe have adopted measures restricting private vehicles from entering city centres, and actively promoted the environmental and social benefits of reduced traffic congestion. Research indicates that the shared mobility market is expected to grow rapidly – more than doubling in the next few years – to an estimated $675 billion by 2025, with Europe accounting for 20 per cent of the global market in shared mobility.
"The company anticipates that it will earn $35 million in revenue by year end, an increase of 58 per cent over 2021’s reported revenue of $22 million"
GoTo is well positioned for this evolution as it plans to expand into new cities, increase B2B activities and sell additional products and services.
According to the MOU signed between the two companies, Neratech will acquire GoTo’s entire share capital (100 per cent) at a cap value of $120 million against the allocation of ordinary shares, comprising 74 per cent of Neratech’s equity.
The share distribution ratio at the time of the merger could vary should there be a funding round, or change in cash and/or debt in each company. Neratech holds $12 million in cash assets, according to the most current company reports. GoTo will have $18 million in cash assets at closing, providing the merged company with total cash assets of $30 million.
Among GoTo’s investors are the DBSI Group, led by Yossi Ben Shalom; Adam Neumann’s family office Nazare Capital Management; the Ungar Family, one of Israel’s leading automotive importers; DQuadrat Equity Partner; IBB Ventures; and Bonventure.
“Transforming GoTo Global into a public company is a significant milestone in achieving our unique vision for shared mobility,” Gil Laser, CEO of GoTo Global, said. “People across the world are embracing shared mobility at a faster pace than ever before and city dwellers are becoming ever more multimodal. GoTo is perfectly positioned to help users embrace a true multimodal mobility experience in a simple and seamless way, all via one app. We believe in our product, our team and our dynamic way of doing things and look to continue creating added value for customers and shareholders alike.”
CAPTIONGil Laser, CEO of GoTo Global