Lemonade, the digital insurance company that leverages AI technology has closed its acquisition of car insurer Metromile.
The deal saw Metromile shareholders receive 7.3 million Lemonade shares.
Metromile offers real-time, personalised car insurance policies by the mile, while Lemonade deploys AI to offer renters, homeowners, pet, car and life insurance.
Lemonade first entered into an agreement to acquire the company towards the end of 2021.
However, not long after, global investor rights law firm Halper Sadeh launched an investigation into whether the sale of Metromile would be fair to its shareholders, over concerns whether Metromile and its board of directors violated federal security laws or breached their fiduciary duties to shareholders.
The deal, according to Lemonade, sees it received over $155m in cash, over $110m in car premiums, in return for under $145m in stock, as well as the acquisition of an insurance entity with 49 state licenses and precision data from 500 million car trips.
Most Metromile employees will transition to roles at Lemonade, and Metromile CEO, Dan Preston, has assumed the role of senior vice president of Strategic Initiatives.
The Metromile app and brand, meanwhile, will continue in-market until its customers can be transitioned to the Lemonade app and brand.
Shai Wininger, Lemonade co-CEO and co-founder, said, ?We launched Lemonade Car a few months ago, and believe it the most delightful product on the market. We also believe auto insurance is challenging for newcomers and disadvantaged by a lack of data which is why we bought Metromile.
?For ten years, Metromile 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 why were so excited to welcome Metromile into the Lemonade family.p>
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