MILE - Lemonade to buy Metromile for ~$500M equity value bolstering car product

Lemonade (NYSE:LMND) agrees to acquire Metromile (NASDAQ:MILE) in an all-stock transaction with a equity value of ~$500M, or just over $200M net of cash. Metromile (MILE) stock shoots up 14% in after-hours trading, while Lemonde (LMND) drops 6.7%. Under the terms, Metromile (MILE) shareholders will get Lemonade (LMND) common shares at a ratio of 19:1. Lemonade (LMND) said the acquisition of Metromile's (MILE) tech-forward car insurance complements its use of big data and artificial intelligence in home and pet insurance. Metromile's car-mounted sensors have covered billions of miles and have cross-referenced that data with actual claims data. "These algorithms hold the promise of propelling Lemonade (LMND) Car from a newcomer in the car insurance space to its vanguard," the company said in a statement. The acquisition is expected to close in Q2 2022. Lemonade (LMND) launched its car insurance product earlier this month in Illinois.

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Lemonade to buy Metromile for ~$500M equity value, bolstering car product