HSCM in business with pro sports stars
HSCM Bermuda has joined basketball star Draymond Green and professional golfer Rory McIlroy as investors in an American direct-to-consumer home insurance technology company.
Kin Insurance Inc and Omnichannel Acquisition Corp have entered into a business combination agreement.
Upon closing of the transaction, the combined company will be named Kin Insurance, Inc and is expected to be listed on the New York Stock Exchange under the new ticker symbol “KI”.
Kin, which currently operates in Florida, Louisiana and California, also announced that it has accelerated its ability to enter into new markets by signing a stock purchase agreement to acquire an inactive insurance carrier that holds licenses in more than 40 states.
The company said the proposed acquisition of the inactive insurance carrier and the business combination are both expected to close in the fourth quarter of 2021 following the satisfaction of customary closing conditions, including regulatory approval, and in the case of the business combination, shareholder approval.
As Kin looks to soon expand its reach into new markets, it said Mr Green joined four-time major champion Mr McIlroy in the recent Series C round as an investor, both of whom will assist in raising Kin’s profile across the country in current markets and in new geographies.
The business combination reflects an estimated implied pro forma enterprise value at closing of $1.03 billion, assuming no redemptions by Omnichannel’s public stockholders, the company said.
Kin said the transaction is further supported by a fully committed $80 million PIPE at $10 per share of Class A common stock of Omnichannel led by HSCM Bermuda and Senator Investment Group.
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 the recent Series C financing, the company said.
It added that the funding will be used to support Kin’s continued growth in existing markets, expansion into new markets, new marketing channels and product portfolio expansions including new insurance and home-related products.
The company said Kin’s existing stockholders will be rolling 100 per cent of their equity into the combined company and are expected to own approximately 74 per cent of the combined company immediately following the closing of the business combination, assuming no redemptions by Omnichannel’s public stockholders.
Kin said PIPE investors are expected to own approximately six per cent of the combined company, and Omnichannel stockholders are expected to own approximately 16 per cent.
HSCM Bermuda is the reinsurance and ILS investment management business arm of Hudson Structured Capital Management Ltd, the asset manager with a focus on the re/insurance and transportation sectors.