US-based insurtech company Lemonade has wrapped up the previously announced deal to buy car insurance provider Metromile.
Metromile, which primarily offers digital insurance services, uses data science technology and telematics sensors to provide pay-per-mile auto insurance plans.
As part of the freshly closed deal, which was signed in November last year, Metromile shareholders have obtained 7.3 million Lemonade shares.
Lemonade has gained an entity with more than $155m in cash and more than $110m in premiums in return for $145m in stock.
The company has also received an insurance entity licensed in 49 states in the US, along with a workforce the helps in collecting precision data from approximately 500 million car tours.
Lemonade co-CEO and cofounder Shai Wininger said: “We launched Lemonade Car a few months ago, and believe it’s the most delightful product on the market. We also believe auto insurance is challenging for newcomers and disadvantaged by a lack of data which is why we bought Metromile.
“For ten years, Metromile’s intricate sensors monitored billions of miles of driving, while their AI cross-referenced this data with hundreds of thousands of claims, to accurately score each tap of the brake and turn of the wheel.
“We believe that adding these models into the Lemonade Car platform will make the most delightful car insurance also the most competitive, precise, and fair.”
With the latest acquisition, majority of Metromile staff will be transferred to Lemonade.
Metromile CEO Dan Preston has been appointed as senior vice president of strategic initiatives at Lemonade.
In addition, both the Metromile app and brand are expected to continue to operate under the same names until the transfer of all the clients to Lemonade app and brand.
Preston said: “It’s hard to imagine a better home for Metromile than Lemonade. While Metromile was at the forefront of using big data and AI in car insurance, Lemonade forged a parallel path for several complementary lines of insurance.
“That makes for a powerful combination.”