Why Lemonade Was a Tasty Stock on Thursday
In what feels like a sigh-of-relief reaction, investors traded shares of Lemonade (NYSE: LMND) higher on Thursday. The next-generation insurer's stock rose roughly in sync with the S&P 500 index following the announcement that the company had closed a long-simmering acquisition.
Lemonade is now the proud owner of artificial-intelligence-powered auto insurance specialist Metromile. That completes a deal valued at around $500 million when it was signed last November.
The acquirer said in a press release that most Metromile employees will transition to jobs at Lemonade, likely in its recently established Lemonade Car unit. This includes Metromile's now-former CEO Dan Preston, who has become Lemonade's senior vice president of strategic initiatives. Metromile's branding, as well as its foundational mobile app, will continue to be used during a transitional phase. Ultimately, both will be transferred into Lemonade's branding and consumer-facing software.
Source Fool.com
