Porch Group Inc., a vertical software company dedicated to the home services industry, has made four strategic acquisitions to strengthen its expanding platform for home service companies and homeowners.
In the first. Porch will acquire Homeowners of America, 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, 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. The transaction, which is pending only regulatory approval, is expected to close in the second quarter and will greatly expand Porch’s presence in InsurTech.
“HOA is a great business with a deep and experienced leadership team who have spent more than a decade building a growing, profitable, and innovative MGA and insurance company hybrid,” said Matt Ehrlichman, Porch founder, chairman and CEO. “We have spent significant time assessing a large number of companies in the insurance industry to identify the right fit for Porch and we can confidently say that HOA is exceptionally unique. Leveraging our property data platform, self-serve consumer technologies, and no-cost homebuyer demand stream with our own line of homeowner’s insurance alongside our existing agency positions us to build the largest, fastest growing, and most profitable InsurTech business.”
Other acquisitions comprise V12, a fully-scaled 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. The platform leverages billions of buyer intent signals and has 330 million U.S. consumer records that small-to-medium-sized businesses (SMB) 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. 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.