Porch Group has announced four separate strategic acquisitions aimed at strengthening the company’s expanding platform for home service companies and homeowners.
Homeowners of America (HOA) is a Managing General Agent and insurance carrier hybrid operating in six states.
Porch and HOA have executed a definitive merger agreement for Porch to acquire HOA and all related subsidiaries.
HOA has a business-to-business-to-consumer revenue model with all revenues recurring in nature.
It generates new policy sales through an independent network of more than 800 independent agency partners.
V12 is a fully scaled Software-as-a-Service marketing and data platform with tools to help brands connect with and engage consumers at key purchasing decision points, such as moving.
The platform leverages billions of buyer intent signals and has 330 million US consumer records that small-to-medium-sized businesses and enterprise brand customers like Jordan’s Furniture, a Berkshire Hathaway company, use in data-driven marketing.
Porch also announced two smaller and equally strategic acquisitions in PalmTech and iRoofing.
Both acquisitions are consistent with Porch’s strategy to go deeper into existing industries and expand its vertical software platform into new home service categories.
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.
Porch expects to execute its playbook by providing PalmTech the ability to help its consumers with key move-related transactions such as insurance.
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.
Porch is acquiring HOA and V12 for a combined $122 million. This includes $97 million in cash and $25 million in cash or equity based on Porch’s share price at the time of the HOA acquisition close.
With these acquisitions, Porch is increasing its 2021 revenue guidance from $120 million to $170 million.
Porch CFO Marty Heimbigner said, “Porch’s business model produces a highly recurring or reoccurring stream of homebuyers that are candidates for HOA and V12 services.
“Over time, we believe we will be able to accelerate the revenue growth of the newly acquired companies to our long-term target of 30% and believe these acquisitions are synergistic and accretive for our shareholders.”