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