SAN FRANCISCO –
UPDATE: A previous edition of this story indicated the shares would start trading on Wednesday. Shift has since issued a corrected news indicating they would start on Thursday.
It’s official: Shift becomes a public company on Thursday, as its Class A common stock will start trading on Nasdaq.
The previously announced merger between the used-car ecommerce platform and Insurance Acquisition Corp, a publicly traded special purpose acquisition company, was approved by the latter’s stockholders on Tuesday.
Shift will bring in roughly $300 million, net of fees and expenses, from the transaction, it said in a news release.
“Today marks an important milestone for our company. With the support of our shareholders, we have completed the merger with Insurance Acquisition Corp. and fortified our cash position with $300 million to invest in growing our business,” Shift co-chief executive officer George Arison said in a news release.
“We are thrilled to bring Shift to the public markets, fulfilling our long-term plan to be a publicly listed company.”
Added Shift co-CEO Toby Russell: “We started Shift in 2014 with a vision to transform the antiquated used car market, ripe for disruption. Through the strength of our technology suite and dedication of our employees, we have grown into a leading ecommerce platform, disrupting the more than $840 billion used-car market.
“We accelerated year-over-year revenue growth to nearly 30% in the third quarter and continue to expect strong growth for the full year,” Russell said. “We are pleased to enter the public market with this positive momentum and look forward to reporting our full third-quarter financial results on our first earnings call in November.”
Daniel Cohen is chairman of Insurance Acquisition Corp., a public SPAC sponsored by Cohen & Company.
“We are pleased with the transaction’s completion. Today’s vote is a testament to our excitement, and the excitement of our shareholders, in bringing Shift to the public markets,” Cohen said in the release.
“We are confident in the strength of Shift’s management team and business model, and we look forward to seeing its continued success as a public company,” he said.