Springworks was acquired by UK-based Tantalum Group for $18M.

Springworks, a Stockholm, Sweden connected car company, announced getting into an agreement for being purchased by its UK-based competitor, Tantalum Corporation.

The all-cash transaction is thought to value Springworks at £14M ($18M).

The deal offers the opportunity for the two companies to combine their strengths, with Tantalum’s Pay.Car and automotive experience complimenting Springworks’ front-end capabilities and experience onboarding service providers like insurance, car dealerships, parking, fleets and repair.

Together, the companies will become one of the largest connected car solution providers in the world with significantly extended scope across the major markets of Europe and the USA.

Tantalum, founded in 2014 and led by CEO Ozgur Tohumcu, makes software that turns older vehicles into connected cars. It is in an alliance with Samsung, the South Korean technology group, and AT&T, the American telecoms operator, to develop a device that plugs into a car’s diagnostics port. It becomes a wifi hotspot for passengers and offers services such as parking payments and roadside assistance.

The company employs 167 people and has Edmund Truell’s Disruptive Capital investment fund as its majority shareholder.

Springworks, founded in 2012 and led by CEO Erik Ramberg, is the brains behind the SPARK software-as-a-service system, a white-label services for mobile operators that turns any car into a ‘smart’ car, providing services including crash assistance, vehicle diagnostics, and roadside assistance management, among others. Springworks’ customers include major European telecom company Telia and autoSense, which has joint ventures with telecom provider Swisscom and leading car importer and dealer, AMAG.

Springworks is not profitable, expecting SEK 20M ($2.2M) in revenues for 2018. The company is backed by Telia, which makes its exit.