Home insurance company Hippo and Reinvent Technology Partners Z today announced a merger agreement with an enterprise value of $5 billion for the combined company.
The new company is expected to have approximately $1.2 billion in cash at closing, including up to $230 million of cash held in Reinvent’s trust account, and a $550 million PIPE at $10 per share that was led by current investors including Dragoneer, Lennar and Ribbit, mutual funds and Reinvent Capital. After the closing, Hippo’s existing stockholders are expected to own approximately 87 percent of the pro forma combined company.
Reinvent and Hippo have agreed to a long-term lock-up on founder shares for up to two years, and a robust earnout structure with full vesting not realized until the share price reaches $20. Major stockholders and key executives of Hippo have agreed to enter into separate lockup agreements as well. Read more.
