- Hippo Enterprises said it will go public through a merger with Reinvent Technology Partners Z, a SPAC backed by Mark Pincus and Reid Hoffman.
- It’s the latest name in the insurance technology industry to go public via SPAC.
- The merger will put both entities at a pro forma value of $US5 ($6) billion.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell
Home insurance startup Hippo Enterprises said it will go public in a merger with Reinvent Technology Partners Z, a blank-check firm backed by Zynga founder Mark Pincus and LinkedIn co-founder Reid Hoffman.
The merger will put both entities at a pro forma value of $US5 ($6) billion, according to a Thursday regulatory filing. The deal will also include a $US450 ($578) million private investment from Reinvent, according to Reuters.
Reinvent will be renamed Hippo Holdings. Hippo will be listed on the New York Stock Exchange under the ticker RTPZ.
Hippo, founded in 2015, pulled in $US150 ($193) million in a Series E funding round at the height of a pandemic in July 2020, boosting its valuation to $US1.5 ($2) billion. Hippo CEO Assaf Wand told Insider at that time that “Funding was a b—-.” The company further raised $US350 ($449) million in November 2020.
Reinvent, meanwhile, had an initial public offering in November.
The funds that Hippo will raise will allow it to establish itself as a bigger player in the insurtech industry, alongside competitors such as Lemonade.
The Palo Alto, California-based company acquired preventative home maintenance company Sheltr in November 2019 and bought Spinnaker Insurance Company, a national property and casualty insurer licensed in 50 states, in August 2020.