California-headquartered, homeowners focused-insurtech Hippo is set to go public following a merger with Reinvent Technology Partners, a special purpose acquisition company.
The transaction is expected to close in mid-2021 and will see the new company have approximately $1.2 billion in cash at closing, including up to approximately $230 million of cash held in Reinvent’s trust account from its initial public offering on November 23.
The transaction is further supported by a $550 million PIPE at $10 per share that was led by current investors.
After the closing of the merger, Hippo’s existing stockholders are expected to own approximately 87% of the pro forma combined company.
Pursuant to the business combination agreement, a Reinvent appointed director will join Hippo’s board at the transaction closing.
Having completed two acquisitions in 2020, including the acquisition of Spinnaker Insurance Company, Hippo intends to continue building an all-inclusive home protection platform encompassing home warranty, smart home tech, home maintenance and professional monitoring services.
“We set out with a bold vision: to shift the focus of the home insurance industry back to the end customer – the homeowner. In an industry that has traditionally referred to its customers as ‘policyholders,’ Hippo has carved out its own path,” said Assaf Wand, Chief Executive Officer and Co-Founder of Hippo.
“We’ve built products and services with a human touch to broaden home protection to include proactive, smart insurance coverage. Our guiding principle is that the best claim is one that never happens, and if it does happen, then we should make our customers’ experience as smooth as possible. The evolution of our industry must be grounded in meeting today’s customer needs.
“Through this strategic partnership with Reinvent and an incredible team of world-class entrepreneurs, investors, and employees, we can’t wait to transform the homeowner experience and accelerate our growth.”
Reid Hoffman, LinkedIn Co-Founder and Co-Lead Director of Reinvent, added, “Guided by Assaf’s visionary leadership, Hippo is deploying impressive speed and skill to transform the home insurance industry. Hippo has created its own industry category by rewriting the homeowner experience through insurance.
“Reinvent’s goal has been to help build industry-leading technology companies at scale for the long-term, and we see ample opportunity to ignite growth and scale Hippo’s business; we believe that Hippo is defining a model that will set the path for years to come in home insurance.”