MILE - Metromile's Buyout Highlights Some Growth Concerns And Major Flaws In SPACs

• LMND announced that it would be buying MILE for $500 million equity value, or $200 million net of cash.
• While the deal could boost LMND's offerings in the car insurance segment, the valuation of the deal raised major red flags.
• MILE came public via SPAC at a >$1 billion valuation, and was bought out for less than half of that not even ten months later.
• The SPAC's board never obtained a valuation and priced MILE at the top end of peers, likely because of AI, and oversold the company's prospects to investors.

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