Octo Telematics’ chairman and chief executive have signed an agreement to acquire 20% of the company’s shares from Russian shareholder Renova.

Octo Telematics’ leadership has acquired a 20% stake from Renova.

The move will reduce Renova’s shareholding in the company to 48.55% and follows the introduction of US sanctions against Russia in recent weeks.

According to reports, the move will enable Octo Telematics to push ahead with its planned initial public offering.

In a statement, Octo Telematics said it’s in direct contact with the relevant US authorities and is “confident that this transaction will address any concerns as to the independence of Octo Telematics from the Renova Group”.

Sir John Peace, Octo Telematics chairman, said: “Having worked closely with the management team and observed at first hand the transformation that Octo is bringing to the insurance industry, I am pleased to have reached this agreement. Investments already made in technology and the strong track record of business wins makes Octo a unique combination of profitable growth at scale that is extremely well positioned, not just in insurance and automotive, but the wider IoT.”

CEO Fabio Sbianchi added: “I am delighted to be able to invest further in the future of the company I founded and this will allow us to continue to focus on our customers, partners and the consumers they serve.”