Omnichannel Acquisition Corp. (NYSE:OCA) and direct-to-consumer homeowners insurance technology company Kin Insurance announced this afternoon that they have opted to mutually terminate their business combination agreement.
The SPAC cited unfavorable market conditions in its press release on the termination, but will turn back to the work of meeting with targets who can benefit from their team of consumer founders and operators. Going forward, Kin Insurance said it plans on “accessing the public markets when the time is appropriate.”
Omnichannel was heading into a shareholder vote to complete the transaction next week, February 1, but given the challenging equity markets environment, as well as the current SPAC redemption climate, the two likely opted to part ways instead. The deal was struck with a minimum cash condition of $200 million, and included a PIPE of $80 million PIPE at $10 per share from HSCM Bermuda and Senator Investment Group.
Omnichannel and Kin originally announced their intended combination on July 19, 2021, a little over six months ago. Omnichannel has roughly four months left on it’s clock with a completion deadline of May 25, 2022. Chicago-based Kin is a pure-play direct-to-consumer digital insurer for homeowners and allows customers to insure their home within just minutes.
Omnichannel is led by Chairman and CEO Matt Higgins, CFO Christine Pantoya and COO Austin Simon.