Omnichannel filed an S-4 registration state,ment and preliminary proxy outlining terms of its proposed merger with Kin Insurance, a business combination that values the combined company at $1.03 billion.
Announced last month, 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 a recent Series C financing. Kin’s existing stockholders will roll 100% of their equity into the combined company and are expected to own approximately 74% of the new company at closing, assuming no redemptions by Omnichannel’s public stockholders. PIPE investors are expected to own approximately 6% and Omnichannel stockholders are expected to own approximately 16%.
Kin, which currently operates in Florida, Louisiana and California, also said it signed a stock purchase agreement to acquire an inactive insurance carrier that holds licenses in more than 40 states. The proposed acquisition of the inactive insurance carrier and the business combination are both expected to close in the fourth quarter. Read more.
