Fri Sep 20 12:12:50 UTC 2024: ## Urgent.ly Divests Connected Insurance Tech Subsidiary, The Floow, to Focus on Core Business

**VIENNA, Va.** – Urgent.ly, Inc. (NASDAQ: ULY), a leading digital roadside and mobility assistance provider, announced today the strategic divestiture of its subsidiary The Floow, a connected insurance technology firm. The move aims to sharpen Urgent.ly’s focus on its core business of powering roadside assistance programs for the automotive, insurance, and transportation sectors.

Under the agreement, The Floow’s management will regain 51% ownership, while Urgent.ly retains a 49% stake and a perpetual royalty-free license for The Floow’s technology. This allows for potential future integration with Urgent.ly’s platform.

The Floow is known for its telematics platform, which offers insights to improve safety and loyalty for insurers and traffic planners. Urgent.ly CEO Matt Booth expressed confidence in the decision, stating it “sharpens the company’s focus on its primary roadside and mobility assistance services.”

The Floow CEO Aldo Monteforte welcomed the return to majority ownership, highlighting the company’s strength and advanced product suite. He anticipates a transformative decade driven by AI and connected products and values the continued partnership with Urgent.ly.

The divestiture is not expected to impact The Floow’s daily services to its customers. For Urgent.ly, it represents a strategic realignment to concentrate on its digitally native software platform, which utilizes location-based services, real-time data, AI, and machine-to-machine communication to deliver roadside assistance solutions globally.

**Urgent.ly’s Recent Developments:**

* Renewed and expanded contracts with key customers, offsetting earlier client losses.
* Extended partnership with a leading global automotive OEM to include services in Canada.
* Analyst firm Needham reaffirmed its “Buy” rating on Urgent.ly, adjusting its price target to $2.00 following the company’s second-quarter results.

**Financial Outlook:**

Urgent.ly’s recent financial performance has been challenging, with a negative adjusted P/E ratio and revenue decline in the last twelve months. The company also faces a significant debt burden and is burning through cash rapidly.

While the strategic divestiture of The Floow may be a step towards stabilizing operations, investors will be closely monitoring Urgent.ly’s financial metrics and market performance for signs of recovery.

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