Hippo Enterprises Inc., a Palo Alto, California-headquartered insurtch, is merging with the special purpose acquisition company Reinvent Technology Partners Z RTPZ with the goal of becoming publicly traded.
What Happened: Hippo was launched in 2015 and offers products through its property casualty agent Hippo Insurance Services in 32 states, with plans to expand further during the year.
Hippo products are available to more than 70% of the U.S. population, and the company expects its products to be available to 95% of the U.S. population by the end of 2021.
Last year, Hippo acquired Spinnaker Insurance Co., an insurance carrier licensed in all 50 states, and the home maintenance platform Sheltr.
Hippo co-founder and CEO Assaf Wand said the merger is a logical next step.
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“The evolution of our industry must be grounded in meeting today’s customer needs,” Wand said in a statement.
“Through this strategic partnership with Reinvent and an incredible team of world-class entrepreneurs, investors, and employees, we can’t wait to transform the homeowner experience and accelerate our growth.”
What Happens Next: The combined company expect to have approximately $1.2 billion in cash at closing, including up to approximately $230 million of cash held in Reinvent’s trust account from its initial public offering in November.
Hippo’s existing stockholders are expected to own approximately 87% of the new entity.
Reid Hoffman, co-lead director of Reinvent and a co-founder of LinkedIn, stated that Hippo “fits squarely into our ‘venture capital at scale’ approach. Together, we will strive to create truly revolutionary outcomes for homeowners and this industry.”
RTPZ Price Action: The SPAC's stock was trading down 6.93% to $10.34 at last check Thursday.
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