Transaction includes commitments for a $185 million private capital raise at $10 per share anchored by institutional investors and Shift will use proceeds to invest in multiple growth initiatives and support working capital. The pro forma implied market capitalization of the combined entity is about $730 million


Shift Technologies and Insurance Acquisition announce merger. (Credit: Pixabay/Henning Westerkamp.)

Shift Technologies, an e-commerce platform on a mission to make car-buying convenient, fair, and accessible for everyone, and Insurance Acquisition, a publicly traded special purpose acquisition company, have announced they have entered into a definitive merger agreement whereby Shift will combine with Insurance Acquisition Corp.  In connection with the closing of the transaction, Insurance Acquisition Corp. intends to change its name to Shift Technologies, Inc. and remain NASDAQ-listed under a new ticker symbol.  The transaction is expected to close in the third quarter of 2020.

Daniel Cohen, Chairman of the Board of Directors of Insurance Acquisition Corp., commented, “We are excited to partner with Shift and its world-class management team as it leverages its technology platform to disrupt the $840+ 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.”

George Arison, Shift Co-CEO, said, “Shift’s mission is to make car purchase and ownership simple. Merging with Insurance Acquisition Corp. is the next step in our evolution and will enhance our ability to scale our operations as we continue to deliver one of the industry’s broadest selections of used cars via our powerful technology platform. We look forward to partnering in a transaction that provides an efficient path for a successful transformation to a public company.”

Toby Russell, Shift Co-CEO added, “Our high net promoter score demonstrates our success in delivering a simple, satisfying car buying experience for consumers, and our strong market penetration in our core markets demonstrates our ability to effectively scale the business. We operate in a massive market and we believe that there is a significant opportunity to continue to rapidly grow our business. We are actively pursuing our growth initiatives as we execute on our vision.”

Following the close of the transaction, Shift’s highly experienced management team will continue to operate the combined company.

Source: Company Press Release