Lemonade’s Acquisition of Metromile

Latham & Watkins represented Lemonade in the transaction, while Kirkland & Ellis advised Metromile.

Lemonade (NYSE: LMND), the insurance company powered by AI and social good, and Metromile (NASDAQ: MILE, MILEW), the data science company focused on auto insurance, have entered into a definitive agreement pursuant to which Lemonade will acquire Metromile in an all-stock transaction that implies a fully diluted equity value of approximately US$500 million, or just over US$200 million net of cash.

Metromile (NASDAQ: MILE, MILEW) is a leading digital insurance platform in the United States. With data science as its foundation, Metromile offers real-time, personalized auto insurance policies by the mile instead of the industry’s reliance on approximations that have historically made prices unfair. 

Lemonade offers renters, homeowners, pet, car, and life insurance. Powered by artificial intelligence and behavioral economics, Lemonade’s full stack insurance carriers in the US and the EU replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork and instant everything. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback. 

Latham & Watkins represented Lemonade in the transaction with a M&A team led by New York partner Robert Katz (Picture), with associates Sašo Kraner, Daley King, and Junhan Zhang. Advice was also provided on capital markets matters by New York partner Marc Jaffe and New York counsel Emily Corbi, with associate John Slater; on tax matters by Chicago partner Rene de Vera, with associate Christopher Ohlgart; on employment, benefits, and labor matters by New York counsel Rifka Singer, with associate Anne Bracaglia; and on antitrust matters by Washington, D.C. partner Farrell Malone, with associate Mary Casale.

The Kirkland team was led by corporate partners Rajab Abbassi, Edward Lee and Tobias Schad and associates Frank Liu, Jermaine Scott Cherry and Lawrence Ho, insurance regulatory partner Parimah Hassouri, executive compensation partner Rohit Nafday and associate Anthony Ji, employment and labor partner Sydney Jones and of counsel Patrick Ryan, technology & IP transactions partner Seth Traxler and associates Bernadette Coppola and James Delacenserie, tax partners Mike Carew and Adam Kool and associate Ruth Thomson, capital markets partner Sophia Hudson and associate Asher Qazi, and antitrust partner Jill Ross and associate Todd Garcia.

Involved fees earner: Rajab Abbassi – Kirkland & Ellis; Mike Carew – Kirkland & Ellis; Jermaine Scott Cherry – Kirkland & Ellis; Bernadette Coppola – Kirkland & Ellis; J. Todd Garcia – Kirkland & Ellis; Parimah Hassouri – Kirkland & Ellis; Sophia Hudson – Kirkland & Ellis; Anthony Ji – Kirkland & Ellis; Sydney Jones – Kirkland & Ellis; Adam Kool – Kirkland & Ellis; Edward Lee – Kirkland & Ellis; Frank Liu – Kirkland & Ellis; Rohit Nafday – Kirkland & Ellis; Asher Qazi – Kirkland & Ellis; Jill Ross – Kirkland & Ellis; Patrick Ryan – Kirkland & Ellis; Tobias Schad – Kirkland & Ellis; Ruth Thomson – Kirkland & Ellis; Seth Traxler – Kirkland & Ellis; Anne Bracaglia – Latham & Watkins; Mary Casale – Latham & Watkins; Emily Corbi – Latham & Watkins; Enrique Rene de Vera – Latham & Watkins; Marc Jaffe – Latham & Watkins; Robert Katz – Latham & Watkins; Daley Kei King – Latham & Watkins; Saso Kraner – Latham & Watkins; Farrell Malone – Latham & Watkins; Christopher Ohlgart – Latham & Watkins; Rifka Singer – Latham & Watkins; John Slater – Latham & Watkins; Junhan Zhang – Latham & Watkins;

Law Firms: Kirkland & Ellis; Latham & Watkins;

Clients: Lemonade; Metromile, Inc.;