Lemon is ready. Get Metromile next year. The purchase is a victory for the recently launched Lominad car insurance product. Metromil has a decades-long driving license based on a usage model and operates licenses in 49 states, all of which will be merged into one company once the deal is finalized.

The purchase price makes Metromil less than the time of the company Made public through SPAC It is worth $ 1.5 billion. The purchase indicates that Metromile has a net worth of close to $ 500 million or more than $ 200 million in cash. Metromil shareholders receive Lominad joint stock at 19 1 1 share. But why are these two companies merging?

Daniel Schreiber, CEO of Lomined, described how the agreement will benefit Lomin at a call from investors on November 9.

“It takes years to build this kind of information,” Schreiber said. “We are incorporating all Metromil Mojo in Lominad cars, bringing a stand-alone product on the market. Together we have all the people and equipment to deliver the most flawless and customer-focused car insurance markets. In any case, it is his plan.

Metromil has had some problems with operating losses over the past few months. At a time when the CVD-19 epidemic was at its peak, the company saw a drop in prices while people were driving and the model was working on a payment system. However, the company, like all traditional car insurers, has seen losses due to car repair costs.

Although industry experts agree that this purchase will benefit both companies.

Mark E. Watson III, co-founder of Aquila Capital Partners, said: “The two companies can benefit from each other’s strengths as they use more common resources, infrastructure and products to move the company forward. As companies that have developed immature business models, they are more likely to succeed as a team.

The action taken from Lominad’s point of view is partly related to how it sells metromol prices – based on continuous data flow, not proxy as used by more traditional car insurance. Lemon truck uses telematics, not proxies.

What the product looks like after the companies are merged is still in operation. But Nick Frank, partner of Simon-Coocher and partners, has something in common.

“Lomonad has been trying to develop a car product for some time, so from my point of view it seems wise for them to buy a solid knowledge base in Metromel, because that company is always investing in a smart digital stack for them. Frank said. “This cannot be a better choice in terms of culture and investment. They are two companies with the same mindset – a perfect marriage.

According to Yel Wissner-Levy, Vice President of Communication at Lominad, Lomi believes that the inclusion of metrolimil technology and culture will benefit.

“Ninety-six percent of the policies in place do not use any telematics, but 4% want to turn off after two weeks and reduce the symptoms,” said Wissner-Levie. “Inheritance-free and 21st-century innovations have uniquely shifted the industry’s focus from cost-effective proxy to continuous data streams. Metromil’s ten-year-old head will start using AI and give car insurance the ability to predict big data loss per mile. The transaction must enable Lemonat to move beyond the development of the most dangerous lemon truck and move to a leadership position at a cost and in writing.

Blog post from Metropolitan States“By partnering with Lominad, we are accelerating the growth of customer-centric, fair and affordable car insurance for millions of drivers across the United States beyond our current eight-state mark.”

According to Metromilil, there are a number of areas of focus, creating additional ways for homeowners and tenants to pack and save, invest in integrated car technology to align with the development of auto safety and self-driving, and take the next major steps to reshape the cost of insurance based on the individual. , And stay away from the wrong proxies, the blog post says. In a blog post, Metromil suggested that joining Lominad would create more opportunities for growth and response.

“As new shareholders, we take advantage of Lominadad’s One Million subscribers, growth experience and metropolitan qualifications in auto insurance. Data science, and claims are automated. The blog post reads that we can achieve the measure efficiently.

Metromil has been working to create a comprehensive insurance coverage for its customers. Lemons already have a home, tenants, life and pet insurance products under one brand, which makes that possible.

Metromil CEO Dan Preston will take on the role of Lomined Chief Executive Officer. In addition, other leaders from Metromile will have similar roles in Lemon.

Stephanie Dalwin, an IT-Novarika consultant, said the agreement would keep the insurance market afloat.

“We are in the process of developing insurance,” Dalwin said. “Many people thought that insurance investments would fall during the epidemic, but that did not happen again. It makes sense to see such purchases. I do not know how much market share they are taking, but the type of consumers you are targeting is digital and inadequate.

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