Shift plans to go public this year as Covid-19 boosts online car sales

Shift plans to go public this year as Covid-19 boosts online car sales
  • Online used-car seller Shift Technologies plans to go public in the third quarter, looking to ride the momentum of rivals Carvana and Vroom, whose valuations have jumped as the pandemic propels them past traditional dealers.
  • Shift, founded in 2013, said it would go public through a reverse merger, in which it will sell a minority stake to Insurance Acquisition Corp. a publicly traded special-purpose acquisition company.
  • Insurance Acquisition, which has no operations of its own, will raise $185 million at the time of the merger through a private sale of its shares. The deal will give San Francisco-based Shift an enterprise value of $415 million.
  • Together, Carvana, Vroom and Shift sold fewer than 300,000 cars in 2019, less than 1% of the used-car market in the U.S.