Private company Embedded Insurance has reportedly made several approaches to acquire Root (NASDAQ:ROOT) for $19.34 per share, the Wall Street Journal reported.
Root, in which Carvana (NYSE:CVNA) has a minority stake, saw its stock rose as much as 35% in pre-market trading. Shares closed at $9.62 on Wednesday after gaining almost 60%. The stock is now indicated to open at $13 apiece on the back of a fresh pre-market rally.
According to WSJ, Embedded Insurance has been attempting to engage in negotiations to buy Root since July last year. The insurer then sent a proposal to acquire the startup on June 9.
Root shares collapsed in recent years after going public in 2020. The IPO valued the company at over $6 billion.
Based on yesterday’s closing price, Root is valued at $137.5 million.