US InsurTech Kin plans to merge with Omnichannel Acquisition – a special purpose acquisition company – to go public on the New York Stock Exchange (NYSE).
According to PYMNTS, Kin will go public on the NYSE under the ticker symbol ‘KI’ and be valued at an estimated $1.03bn. The combined business will be called Kin Insurance.
Founded in 2016, Kin is a home insurance business that customises coverage and prices and offers homeowners, landlord, condo and mobile home insurance through its Kin Interinsurance Network. The company currently operates across Florida, Louisana and California.
The acquisition will also include an $80m PIPE commitment led by Senator Investment Group and HSCM Bermuda, as well as participation from Park West Asset Management, Gillson Capital and a range of other institutional investors.
The deal also includes backing from new investors such as VaynerMedia CEO Gary Vaynerchuk, Jeff Blau and Bruce Beal of Related Companies and CEO of Willis Group Holdings Joe Plumeri. Previous investors include multi-champion golfer Rory McIlroy.
According to Kin, the stock purchase agreement deal – and the public offering – are expected to close in the last quarter of 2021.
Kin co-founder and CEO Sean Harper said, “The home insurance industry has been coasting for years on legacy technology and an antiquated way of interacting with customers. It is more than ripe for an innovative alternative, and that is exactly why we created Kin – to provide customers with a better home insurance offering, better pricing and an overall better experience.
“Access to affordable home insurance is challenging in regions that are impacted by climate change and severe weather; at Kin, our proprietary technology and deep data advantage enable us to best evaluate risk and price home insurance fairly for consumers.”
Omnichannel chairman and CEO Matt Higgins added, “The Kin team has leveraged its decades of insurance and FinTech experience to build a capital-efficient company that is experiencing outstanding growth across the board, along with compelling and superior unit economics.
“As Covid-19 necessitated a digital-first approach to everything, consumers’ relationships with insurance companies changed as well, and they put an increased value on medical and life insurance during the pandemic lockdowns.”
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