Hagerty Inc. (HGTY)

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SPAC closing > Shares of specialist automotive insurer Hagerty Inc. jumped on their market debut after its combination with listed special-purpose acquisition company Aldel Financial Inc. closed.

In morning trading, the shares were quoted 18% higher at $12.60 on the New York Stock Exchange.

Hagerty and Aldel announced a tie-up in August that gave the insurance provider a pro forma enterprise value of $3.13 billion and provided cash proceeds to fuel the company's digital-initiatives push. Aldel's shareholders approved the deal at a special meeting Wednesday.

Hagerty said its merger with Aldel included a $704 million fully committed investment led by strategic investors State Farm and Markel Corp.

"We are confident we have sufficient capital to advance our strategy," Hagerty Chief Executive McKeel Hagerty said.

Special-purpose acquisition companies, or SPACs, are shell company that raise money and list publicly with the goal of merging with a private company. SPAC mergers have become popular alternatives to traditional initial public offerings, and have allowed startups with scant track records to list.

Aldel, led by Chairman and CEO Robert Kauffman and co-sponsored by Fundamental Global, raised $116 million in its April initial public offering.


Write to Robb M. Stewart at [e-mail]