Hippo expects to receive more than $550m in cash from the deal.  Credit: Tumisu from Pixabay.

Hippo, which sells homeowners insurance, has completed its merger with Reinvent Technology Partners Z (RTPZ), a publicly-traded special purpose acquisition company.

As per the terms of the agreement, Hippo expects to receive more than $550m in cash proceeds, which includes the proceeds from a previously announced private placement of common stock.

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The insurer plans to use the proceeds to drive growth, expand into new markets, develop new product offerings, and create a vertically integrated home protection and insurance platform.

Hippo co-founder and CEO Assaf Wand, along with the current management team, will continue to lead the company.

Wand said: “Today’s important milestone showcases the tremendous progress we’ve made in our pursuit to revolutionize home insurance through the lens of the homeowner.

“We are excited to embark on this next phase of Hippo’s journey as we modernize the home insurance industry and bring joy back into homeownership.”

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RTPZ co-lead director and LinkedIn co-founder Reid Hoffman said: “We are thrilled to close our business combination with Hippo and look forward to this next chapter in transforming homeowner’s insurance with Hippo’s digital-first set of offerings.

“Assaf and his world-class team are well-positioned to modernize a massive market that is ripe for disruption through Hippo’s leading technology and insurance expertise.”

Hippo’s common stock and warrants will trade on the New York Stock Exchange under the ticker symbols “HIPO” and “HIPO.WS,” respectively.