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RTP Stock: Reinvent Technology Surges on Hippo SPAC Merger Reports

The shares of blank-check company Reinvent Technology Partners (NYSE:RTP) surged more than 11% in pre-market trading this morning after reports that merger talks were ongoing with insurance fintech Hippo. The RTP stock price reached $14.50 a share, as of 6 a.m. Eastern. It closed on Feb. 5 at $13.02.

A man holding two puzzle pieces surrounded by more, smaller puzzle pieces. SPAC IPOs
Source: Pasuwan/ShutterStock.com

Reinvent, a special purpose acquisition company (SPAC) backed by LinkedIn founder Reid Hoffman and Zynga (NASDAQ:ZNGA) founder Mark Pincus, raised $690 million in its September 2020 initial public offering. Hippo, an Israeli insurtech, was valued at $3 billion in November after two investments totaling $500 million. The combined company is set to be valued at more than $5 billion, according to reports.

Hippo sells homeowners insurance online. It emerged out of the Tel Aviv startup ecosystem that produced Lemonade (NYSE:LMND), which held its IPO in July. LMND stock has more than quintupled since the listing.

According to its website, Hippo uses artificial intelligence (AI) tools to combine local building records and filings, satellite data and connected smart home devices to make its coverage decisions. Once coverage is in force, those devices and other data sources are tapped to advise homeowners when to make repairs or take other actions to their property.

RTP Stock and the SPAC Merger Pipeline

The “startup nation” — a moniker adopted by the Israeli business community from the 2009 book of the same name — has emerged as a font of prospective SPAC merger candidates.

Last month, just months after its New York Stock Exchange debut, blank-check firm ION Acquisition (NYSE:IACA), announced a merger with digital advertising firm Taboola. In December, IACA stock saw as much as a 20% premarket gain on initial reports of the merger.

Meanwhile, the shares of blank-check company 10X Capital Venture Acquisition (NASDAQ:VCVC) surged last week on the news that it would merge with REE Automotive, an Israeli electric-vehicle technology startup.

And in what could be the largest of such Tel Aviv-New York deals, Israeli fintech Payoneer said on Feb. 3 that it entered into a definitive agreement with SPAC FTAC Olympus Acquisition (NASDAQ:FTOC), and will begin trading at an estimated enterprise value of $3.3 billion.

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

InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups. He previously was emerging markets editor for Bloomberg News in Tel Aviv. His Substack newsletter, TLV Strategist, covers the Israel business scene.

Article printed from InvestorPlace Media, https://investorplace.com/2021/02/rtp-stock-reinvent-technology-surges-on-hippo-spac-merger-reports/.

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