Hippo Enterprises said it’s going through a merger with a blank check business, backed by Silicon Valley’s heavyweights Reid Hoffman and Mark Pincus, in a deal that gives the joint venture a pro forma business value of $ 5 billion.
Founded in 2015, Hippo, based on insurance technology on Palo Alto, sells homeowners insurance online. According to Pitchbook data, it raised $ 350 million in the last funding round at a valuation of about $ 1.65 billion.
The agreement with Reinvent Technology Partners Z, Special Acquisition Enterprise (SPAC), will include a private investment of approximately $ 450 million.
Hippo acquired the home maintenance platform Sheltr in 2019, followed by the acquisition of rival real estate and casualty insurer Spinnaker Insurance Co.
SPACs are shell companies that raise funds through an IPO to make a private company public.
Hippo’s agreement with Reinvent is the latest in a series of insurance companies, or ‘insurtech’ as it is commonly called, that follow the SPAC merger route to become public.
After the merger, Hippo will be listed on the New York Stock Exchange under the new symbol “RTPZ”.
(Reporting by Sohini Podder in Bengaluru; Edited by Shailesh Kuber, Bernard Orr)
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