MILE - Everything You Need to Know About Lemonade's Upcoming Acquisition
In an all-stock deal, the tech insurance company Lemonade (NYSE: LMND) will soon acquire the pay-per-mile car insurance company Metromile (NASDAQ: MILE) . CEOs of both companies recently reiterated expectations that the deal will close by the end of the second quarter, meaning between now and June 30. Here's what you need to know about the acquisition and what it means for Lemonade's future.
In November 2021, Lemonade announced its intention to acquire Metromile in an all-stock deal valued at approximately $500 million. Since the announcement, both Lemonade and Metromile shares have dropped about 70%. As a result of the decline in Metromile's stock price, the acquisition is now closer to $115 million, or roughly $35 million when accounting for Metromile's net cash.
Holders of Metromile common stock will receive one share of Lemonade for every 19 shares of Metromile. In all-stock acquisitions like this, cash will be paid in lieu of any fractional shares, meaning Lemonade will compensate any leftover shares not divisible by 19 in the form of cash within 10 business days of the transaction.
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Everything You Need to Know About Lemonade's Upcoming Acquisition