Lemonade wraps up acquisition of car insurance provider Metromile
Lemonade, an American insurtech company, has closed the previously announced acquisition of San Francisco-based car insurance provider Metromile.
The all-stock deal was announced in November 2021.
As per the terms, the deal implies a fully diluted equity value of around $500 million, or a little over $200 million net of cash.
Metromile’s shareholders have been issued 7.3 million shares of Lemonade.
In return, Lemonade has added a business which is licensed in 49 US states and has more than $155 million in cash and car premiums of over $110 million.
Shai Wininger — Lemonade co-CEO and cofounder said: “For ten years, Metromile’s intricate sensors monitored billions of miles of driving, while their AI cross-referenced this data with hundreds of thousands of claims, to accurately score each tap of the brake and turn of the wheel.
“We believe that adding these models into the Lemonade Car platform will make the most delightful car insurance also the most competitive, precise, and fair. That’s why we’re so excited to welcome Metromile into the Lemonade family.”
Most of the employees of Metromile will shift to roles at Lemonade.
Metromile CEO Dan Preston has taken over as Lemonade Strategic Initiatives Senior Vice President.
Dan Preston said: “It’s hard to imagine a better home for Metromile than Lemonade. While Metromile was at the forefront of using big data and AI in car insurance, Lemonade forged a parallel path for several complementary lines of insurance. That makes for a powerful combination.
“The upshot is that Metromile’s mission to connect the world to personalized insurance receives a big boost today. While the Metromile brand will sunset over time, its promise to consumers will be realized bigger, better, and sooner now that we’ve joined forces.”
Both the app and brand of Metromile will continue in-market until all customers are transitioned to the app and brand of Lemonade. Metromile will be delisted from NASDAQ.