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.

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.

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