The proposed business combination agreement between insurtech Kin Insurance and Omnichannel Acquisition Corp., a special-purpose acquisition company (SPAC), has been terminated due to “current unfavourable market conditions.”
It was revealed in July of 2020 that Kin, a direct-to-consumer homeowners insurance technology company, intended to go public via a $1 billion business combination with Omnichannel Acquisition Corp.
At this time, the company said that the merger agreement was expected to close in the fourth quarter of 2021. However, the environment has been challenging and despite working to bring the deal together, the parties have decided to terminate the agreement.
Sean Harper, Chief Executive Officer (CEO) of Kin, explained: “We worked tirelessly over the better part of a year to bring this combination to fruition, but we have collectively decided that current market conditions are simply not conducive to Kin becoming a public company at this time.
“I want to thank Matt and the incredible team at Omnichannel for the tremendous contributions they made to Kin’s development throughout this process, particularly as it relates to developing our brand and communicating our important mission to help catastrophe-prone areas adapt to climate change.
“I am extremely proud of the way we have executed our business plan, as we finished the year with 320 percent growth in total managed premium, and the best unit economics in the insurtech industry. We have a bright future ahead of us – one that will involve accessing the public markets when the time is appropriate.”
Matt Higgins, CEO of Omnichannel, added: “Kin is a very special company with an important mandate. We cannot retreat from climate change, or abandon our most vulnerable cities, but instead we must adapt, and the insurance industry must evolve. Unfortunately, even the most promising high growth companies have a difficult time overcoming current market sentiment, and Kin is no exception. It has been an honor to work alongside the Kin team for months as they hit every target they put forth during this process.
“I wish Sean and Kin every success on their journey ahead. The Omni team will turn back to the work of meeting with targets who can benefit from our unprecedented team of consumer founders and world-class operators. Our unrivaled team of experts know how to execute a digitally fueled, omnichannel strategy to meet the demands of a frictionless-first economy.”
As we reported last week, Kin’s total managed premium increased by more than four times during 2021.
