Used-car marketplace Shift Technologies on Monday announced plans to go public via a reverse merger with Insurance Acquisition Corp.
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Shift lets users buy, sell and finance vehicles on its platform. Through the deal, San Francisco-based Shift will combine with Insurance Acquisition Corp., a publicly traded special purpose acquisition company. As part of the deal, Insurance Acquisition Corp. will change its name to Shift Technologies and trade on the Nasdaq under a new ticker symbol, according to a statement from the company.
Shift is backed by investors including Goldman Sachs Investment Partners and Lithia Motors, according to Crunchbase. The transaction with Insurance Acquisition Corp. is expected to close in the third quarter, the company said.
“We are excited to partner with Shift and its world-class management team as it leverages its technology platform to disrupt the $840+ billion used car market,” Insurance Acquisition Corp. board of directors chairman Daniel Cohen said in a statement. “With its tremendous, ongoing success in its core markets, we believe that this merger and its accompanying capital infusion will enable Shift to expand its product offerings and execute on its growth strategies.”
Shift isn’t the first used-car platform to go public in recent years. Arizona-based Carvana went public in 2017, and more recently Vroom saw its shares soar when it went public earlier this month.
Shift last raised money with its Series D in April 2019, according to Crunchbase data.
Illustration: Dom Guzman