San Francisco – December 2, 2020 – Cooley advised digital insurance platform and pay-per-mile auto insurer Metromile on its agreement to combine with INSU Acquisition Corp. II, a publicly traded special purpose acquisition company or SPAC. The combined company will remain publicly listed on Nasdaq and have an implied estimated market capitalization of $1.3 billion, with the closing expected in Q1 2021. Partners Garth Osterman and Rachel Proffitt led the Cooley team advising Metromile on the transaction.
The combined company will continue under the Metromile name and is expected to trade under the new ticker symbol "MLE." It is anticipated that the transaction will provide Metromile with up to approximately $294 million of cash at closing, which the combined company expects to use to reduce existing debt and accelerate growth initiatives – expanding into new markets, increasing partnerships and launching new products.
"We founded Metromile to address the vast inequities in auto insurance, and we are proving that our model of real-time, digital auto insurance is both resilient and sustainable," Dan Preston, chief executive officer of Metromile, said in a news release. "As a public company, we expect to use our strengthened balance sheet to accelerate our growth, bring Metromile nationwide and scale rapidly toward sustained profitability."
With data science as its foundation, Metromile offers its insurance customers real time, personalized auto insurance policies, priced and billed by the mile, with rates based on precisely how and how much they actually drive, instead of using the industry standard approximations and estimates that make prices unfair for most customers. Through Metromile's digitally native offering, built around the needs of the modern driver, its per-mile insurance policies save customers, on average, 47% over what they were paying their previous auto insurer.
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