FOXO, a technology-powered life insurance firm, has signed a definitive merger agreement with Delwinds Insurance Acquisition to go public.
The merger with Delwinds, a special purpose acquisition company, will value the combined entity at $369m.
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FOXO expects to raise up to $224m from the transaction, which includes up to $201m cash held in the trust account of Delwinds.
Additionally, FOXO will receive at least $22.5m through a convertible debenture offering, led by institutional investors and joined by The Gray Insurance Company.
FOXO will use the proceeds to launch its proprietary life insurance products and services using its distribution and services platform.
The funds will also be used to accelerate the development of FOXO’s platform, which offers saliva-based epigenetic biomarker underwriting technology and consumer engagement services to the life insurance market.
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By GlobalDataThe life insurance cover provided by FOXO uses saliva tests to detect markers in the body that can provide insights into the person’s health.
FOXO said its platform will allow insurers to integrate molecular health and wellness into life insurance.
FOXO founder and CEO Jon Sabes said: “Our goal is to modernise life insurance by making advances in longevity science fundamental to the product itself. This transaction is transformative in our effort to support the industry’s effort to modernise in the face of accelerating advances in science and technology to reach more consumers at a time when interest in life insurance is at all-time highs.”
Delwinds chairman and CEO Andrew Poole said: “FOXO is aiming to modernise the life insurance industry with an unbending and disruptive vision of science and technology.
“FOXO will provide value to policyholders that goes beyond mortality coverage and introduces step-change underwriting technology. We look forward to working closely with FOXO and playing a part in enabling, fostering and commercializing health span for all.”
The deal is expected to close in the second quarter of 2022.
