Lemonade Set to Acquire Insurer Metromile in First Takeover (2)

Lemonade Inc. is bolstering its nascent auto-insurance business by acquiring pay-per-mile insurer Metromile Inc.in its first takeover.

The deal values San Francisco-based Metromile, which went public via a merger with a blank-check company earlier this year, at roughly $500 million, according to a statement Monday. Metromile shareholders will receive Lemonade common shares at a ratio of 19 to 1, and the deal is expected to close by mid-2022.

SoftBank Group Corp.-backed Lemonade, which went public last year, last week debuted an auto-insurance product called Lemonade Car, currently being sold in Illinois with plans to roll out the offering in ...