Apart from the US home insurer, Porch Group has acquired V12, PalmTech, and iRoofing
Porch Group has announced four acquisitions, which includes that of home insurance firm Homeowners of America (HOA), for a total price of over $122m.
The other three firms being acquired by the US-based online home services platform are V12, PalmTech, and iRoofing.
Homeowners of America and all its related subsidiaries are being acquired from IA Capital Group and other shareholders for $100m. The consideration is made up of $75m in cash and $25m in either cash or Porch Group common stock.
Established in 2006, the Texas-based Homeowners of America is a managing general agent (MGA) and insurance carrier hybrid.
The company operates mainly in six states that include Texas, Arizona, Virginia, North Carolina, South Carolina, and Georgia.
It has license to operate across 31 states in the US.
HOA has a business-to-business-to-consumer (B2B2C) revenue model. It makes new policy sales via an independent network of over 800 independent agency partners, which include Porch Group’s Elite Insurance Group insurance agency.
Porch Group expects to become one of the largest insurtech firms by combining its access to homebuyers and property data with Homeowners of America’s experience in pricing and claims.
Porch Group founder, chairman, and CEO said: “HOA allows us to significantly accelerate our ability to penetrate the massive insurance industry and provides us the actuarial, underwriting, reinsurance, and claims management products and expertise we need.
“Its strengths and capabilities perfectly fit Porch as we continue to expand B2B2C insurance revenues on top of our vertical software platform.
“Leveraging our property data platform, self-serve consumer technologies, and no-cost homebuyer demand stream, and now combining our own line of homeowner’s insurance alongside our existing agency, we believe we are positioned to build the largest, fastest growing, and most profitable InsurTech business.”
The deal, which is subject to regulatory approval, is expected to be completed in Q2 2021.
On the other hand, V12 is a software-as-a-service (SaaS) marketing and data platform, which helps brands to connect with and engage consumers at crucial purchasing decision points. V12 is being acquired for $22m.
PalmTech, which develops software for home inspectors, has been acquired for an undisclosed price. Porch Group anticipates executing its playbook by giving PalmTech the ability to help its consumers with important move-related transactions such as insurance.
The other acquisition for Porch Group is iRoofing, which offers an all-in-one SaaS application for roofing contractors. Porch Group plans to fast track iRoofing’s growth by enabling its contractors to help consumers save money on home insurance after completion of their new roof installation project.