The Porch Group, a software platform focused on home services companies, is acquiring Irving, Texas-based managing general agent and insurance carrier, Homeowners of America (HOA).
Under a merger agreement, Porch will acquires HOA and all related subsidiaries. The transaction, which is pending regulatory approval, is expected to close in the second quarter of 2021.
Founded in 2006, HOA operates in six states, including Texas, Arizona, North Carolina, South Carolina, Virginia and Georgia, and is licensed in 31 states. HOA generates new policy sales through an independent network of more than 800 independent agency partners.
Seattle-based Porch provides software and services to more than 10,500 home services companies such as home inspectors, moving companies, real estate agencies, utility companies, and warranty companies.
In a media release announcing the acquisition, Porch said combining the MGA and insurance carrier hybrid with Porch’s insurance agency business will allow Porch to attract the highest lifetime value potential customers through a comprehensive insurance offering. Matt Ehrlichman, Porch founder, chairman and CEO, said the company remains committed to “HOA’s independent agent distribution channel.”
In addition to HOA, Porch announced three other strategic acquisitions it said will strengthen the company’s platform for home service companies and homeowners: V12, PalmTech and iRoofing.
V12 is a Software-as-a-Service (SaaS) marketing and data platform with tools to help brands connect with and engage consumers at key purchasing decision points, such as moving.
PalmTech is a software company for home inspectors, historically targeted to smaller home inspectors, which complements Porch’s strong adoption across medium and large inspection companies.
iRoofing provides an all-in-one SaaS application for roofing contractors bundled in a monthly or annual subscription. Its software provides remote measurement and quoting, contract management and materials ordering. iRoofing currently processes more than 485,000 jobs on its platform annually.
Porch is acquiring HOA and V12 for a combined $122 million. This includes $97 million in cash and $25 million in cash or equity (at Porch’s election) based on Porch’s share price at the time of the HOA acquisition close. This equates to a purchase price multiple of 2.0 times combined estimated 2021 HOA and V12 revenue. With these acquisitions, Porch is increasing its 2021 revenue guidance from $120 million to $170 million.
Source: Porch Group
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