Metromile SPAC Merger: 13 Things for INAQ Stock Investors to Know About Digital Auto Insurer MLE

Metromile is preparing for a merger with special purpose acquisition company (SPAC) Insu Acquisition (NASDAQ:INAQ).

The letters "M&A" on a wooden table, surrounded by a calculator and other business items.
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Here’s everything investors need to know about the Metromile SPAC merger.

  • Starting off, Metromile is a digital auto insurance company that operates on a unique model.
  • The company’s insurance starts as low as $30 a month and then it tacks on extra for miles driven.
  • The idea here is that people that don’t drive often can save on their auto insurance with the company.
  • Another division of the company is Metromile Enterprise, which helps large insurers transfer to the cloud using part of its platform.
  • Metromile’s SPAC merger will have it taking over Insu Acquisition, which will change its name to the former’s once complete.
  • This merger will also result in shares of INAQ stock undergoing a ticker change and becoming shares of MLE stock.
  • The merger deal implies a pro forma enterprise value at closing of $956 million for the company.
  • It will also net Metromile $294 million in cash to work with once the deal is done.
  • Dan Preston, the current CEO of Metromile, will continue to lead it after the SPAC merger is complete.
  • The deal still needs to complete customary closing conditions, such as getting approval from shareholders.
  • As long as there are no troubles, the SPAC merger is set to close in the first quarter of 2021.
  • Investors eyeing the company ahead of the merger will note that it has a 76% average annual premium growth rate from 2015 to 2019.
  • It’s also worth mentioning that it’s the largest pay-per-mile insurer in the U.S.

INAQ stock was up 7.7% as of Wednesday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/11/metromile-spac-merger-what-to-know/.

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