Kin Insurance in $1.03bn merger deal with 'Shark Tank' judge's SPAC
Kin Insurance, a direct-to-consumer digital insurer focused on the homeowners market, is going public via a merger with Omnichannel Acquisition Corp, a special purpose acquisition company led by recurring 'Shark Tank' guest judge Matt Higgins.
The agreement values Kin Insurance at roughly $1.03 billion. It is further supported by a fully committed $80 million PIPE at $10 per share of Class A common stock of Omnichannel led by HSCM Bermuda and Senator Investment Group.
The transaction is expected to provide Kin with approximately $242 million of cash at closing, which is in addition to the $80 million raised in the recent Series C financing. The funding will be used to support Kin’s continued growth in existing markets, expansion into new markets, new marketing channels and product portfolio expansions including new insurance and home-related products.
Kin’s new strategic investors include Joe Plumeri, former chairman and CEO of Willis Group Holdings; Stephen Ross, Jeff Blau and Bruce Beal of Related Companies; and Gary Vaynerchuk, CEO of VaynerMedia.
Upon closing of the merger, expected in the fourth quarter of 2021, the combined company will be listed on the New York Stock Exchange under the new ticker "KI".
Kin, which currently operates in Florida, Louisiana and California, also announced that it has accelerated its ability to enter into new markets by signing a stock purchase agreement to acquire an inactive insurance carrier that holds licenses in more than 40 states.
As Kin looks to soon expand its reach into new markets, the company announced NBA superstar Draymond Green joined four-time major champion golf pro Rory McIlroy in the recent Series C round as an investor, both of whom will assist in raising the insurer's profile across the country in current markets and in new geographies.
Kin’s proprietary technology draws upon thousands of data points to underwrite home insurance in minutes, without an agent, even in challenging climate-impacted geographies.
“The home insurance industry has been coasting for years on legacy technology and an antiquated way of interacting with customers. It is more than ripe for an innovative alternative and that is exactly why we created Kin – to provide customers with a better home insurance offering, better pricing and an overall better experience,” said Sean Harper, co-founder and chief executive officer of Kin (pictured).
Harper added: “Access to affordable home insurance is challenging in regions that are impacted by climate change and severe weather; at Kin, our proprietary technology and deep data advantage enables us to best evaluate risk and price home insurance fairly for consumers."
Harper believes Kin is well-positioned to significantly expand its market presence and strengthen its balance sheet to further scale its platform with Higgins-led special purpose acquisition company (SPAC).
“Today’s announcement is a major milestone and validation of what we have built, as well as an important next step in our development,” he added. “We are excited to enter the public markets with Matt Higgins and the incredible team at Omnichannel, who have a proven track record of building enduring direct-to-consumer brands, making them the perfect complement for Kin.”
Higgins, chairman and CEO of Omnichannel, commented: “The Kin team has leveraged their decades of insurance and fintech experience to build a capital efficient company that is experiencing outstanding growth across the board, along with compelling and superior unit economics.
“ Kin’s direct-to-consumer approach to insurance is a true differentiator and provides it with a clear-cut advantage versus the competition. As a result, Kin has an opportunity to reinvent and lead the massive homeowners insurance marketplace. The Omni team is already hard at work helping elevate Kin’s brand presence, expanding Kin’s acquisition channels and layering in the most cutting-edge acquisition tactics. The pandemic compressed years of ecommerce adoption and upended industries overnight. Now the future belongs to frictionless commerce, and the homeowner's insurance industry is lagging way behind. We believe Kin is well positioned to capitalize on that unmet demand for years to come.”
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