(Reuters) -Specialty automotive insurance platform Hagerty has agreed to go public through a merger with SPAC Aldel Financial Inc in a deal that values it at $3.13 billion, the companies said on Wednesday.
The deal with Aldel includes a $704 million private investment in public equity led by insurer State Farm and financial holding firm Markel Corp.
The merger is expected to deliver up to $820 million of gross proceeds to the merged company, Hagerty said.
Hagerty, launched in 1984, provides insurance coverage for collectible vehicles which are not driven daily, and offers lower prices than standard insurers.
Special purpose acquisition companies, or SPACs, such as Aldel use capital raised through their IPOs to take a private company public. Aldel raised $115 million in its IPO in April.