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Shift Technologies to go public through a reverse merger with SPAC
Posted on Tuesday, 30 June 2020 10:18
Ecommerce platform Shift Technologies has agreed to combine operations with listed special purpose acquisition company (SPAC) Insurance Acquisition to gain access to Nasdaq under a new ticker symbol.
The blank check business, which raised USD 131.00 million in its initial public offering last year, has agreed to pay USD 380.00 million in a combination of class A common stock and 6.00 million shares that will be earned if the combined company achieves certain price targets over time.
In connection with the transaction, institutional investors, including Fidelity Management & Research Company and ArrowMark Partners have committed to a USD 185.00 million private purchase of Insurance Acquisition.
The combined company will retain up to USD 300.00 million of cash following the deal, which will be used to support working capital and fund growth.
Both boards have approved the transaction, which is expected to close in the third quarter of 2020 pending shareholder and regulatory approvals.
Daniel Cohen, chairman of the board of Insurance Acquisition, said: “We are excited to partner with Shift and its world-class management team as it leverages its technology platform to disrupt the USD 840.00 billion+ used car market.
“With its tremendous, ongoing success in its core markets, we believe that this merger and its accompanying capital infusion will enable Shift to expand its product offerings and execute on its growth strategies.”
Shift has been building automotive ecommerce powered by a unique technology platform that delivers a comprehensive and seamless car ownership experience.
It allows its customers to buy, sell and finance cars in a simple, quick and enjoyable process.
Combining both a “buy it now” option to purchase a vehicle sight unseen with its concierge service, that allows customers to request a test drive at their home or work.
Shift was founded in Paris, France in 2014 and has raised USD 100.00 million in funding as of March 2019.
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