A bidder has emerged for embattled car-insurance startup Root, Inc. (NasdaqGS:ROOT), according to people familiar with the matter. Closely held Embedded Insurance, Inc., run by insurance-technology entrepreneur James Hall, has made multiple approaches and offered to acquire Carvana-backed Root for $19.34 a share, the people said. That would be a significant premium to Root's closing price June 20, 2023 of $6.02, which gives the company a market value just north of $80 million, below its peak of as much as $7.5 billion.

Hall privately sent Root's board a proposal to buy the company on June 9, having attempted to engage in negotiations since July of last year, the people said. In response, Root Chief Executive Officer Alex Timm has made several requests that Embedded Insurance has addressed, and Hall is still interested in pursuing a deal, the people added. Embedded Insurance has committed to put the entire equity check required for the deal into escrow in advance of finalizing any purchase agreement, the people said.

A spokesperson for Root said in an email that the company's board "evaluates how best to deliver shareholder value in accordance with its fiduciary duties".