Business
Porch Group Announces Four Strategic Acquisitions and Expansion Into InsurTech
- Executed Definitive Agreement to Acquire Homeowners of America to Better Serve Customers as a Managing General Agent and Carrier - - Accelerates Mover
About this update from Porch Group, Inc.
[{"type":"text","content":"- Executed Definitive Agreement to Acquire Homeowners of America to Better Serve Customers as a Managing General Agent and Carrier - - Accelerates Mover Marketing Growth Strategy with the Acquisition of V12 - - Tuck-In Acquisitions of PalmTech and iRoofing Broaden Porch’s Vertical Software Platform - - Acquisitions Expand U.S. Total Addressable Market (TAM) by Nearly $100 Billion to Over $320 Billion - - 2021 Revenue Outlook Increased to $170 Million, a 134% Year-over-Year Growth Rate - - Conference Call and Presentation Scheduled Today at 5:00 p.m. Eastern Time - SEATTLE, Jan. 14, 2021 (GLOBE NEWSWIRE) -- Porch Group, Inc. (\"Porch” or “the Company\") (NASDAQ: PRCH), a leading vertical software company reinventing the home services industry, is announcing four strategic acquisitions that strengthen the Company’s rapidly expanding platform for home service companies and homeowners. Homeowners of America (HOA) Acquisition Porch and Homeowners of America (HOA) have executed a definitive merger agreement for Porch to acquire HOA and all related subsidiaries. The transaction, which is pending only regulatory approval, is expected to close in the second quarter of 2021. HOA is a Managing General Agent (MGA) and insurance carrier hybrid with high margins and a capital efficient reinsurance strategy which limits retained risk. HOA operates in six states, including Texas, Arizona, North Carolina, South Carolina, Virginia, and Georgia. The company was founded in 2006 in Texas, a $10 billion homeowners insurance market, and was the 12th largest home insurer in Texas in 2019. HOA is licensed to operate in 31 states, positioning it for nationwide expansion as part of Porch. HOA has a business-to-business-to-consumer (B2B2C) revenue model with all revenues recurring in nature. It generates new policy sales through an independent network of more than 800 independent agency partners. HOA Strategic Rationale Fits squarely with Porch’s strategy of going deeper into the insurance value chain. Home insurance is the highest value service in the home and a key growth opportunity for Porch. Porch will be able to feature and prioritize HOA to its large, recurring base of homebuyers. Combining an MGA and insurance carrier hybrid with Porch’s insurance agency business will allow Porch to attract the highest lifetime value (LTV) potential customers throu...