Porch Group, Inc. completed the acquisition of Certain Businesses Relating to Home Warranty Products and Inspector-centric Software and Services from Residential Warranty Services, Inc. for $42.3 million.
April 31, 2022
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Porch Group, Inc. (NasdaqCM:PRCH) entered into definitive agreement to acquire Certain Businesses Relating to Home Warranty Products and Inspector-centric Software and Services from Residential Warranty Services, Inc. for $33 million on February 28, 2022. The consideration consists of $29 million of cash, $4 million of Porch stock and additional contingent consideration tied to the performance of a recently launched business line. Of the total consideration, $4.95 million was paid at signing. The portions of the RWS acquired businesses involving warranty operations in each of California and Florida are subject to regulatory approval, and as such a portion of the purchase price will be deferred until approval is received for California and for Florida. The transaction is expected to close early in quarter two of 2022. Joshua G. DuClos and Michael Rosenfield of Sidley Austin advised Porch Group in the transaction.
Porch Group, Inc. (NasdaqCM:PRCH) completed the acquisition of Certain Businesses Relating to Home Warranty Products and Inspector-centric Software and Services from Residential Warranty Services, Inc. for $42.3 million on April 1, 2022. Porch paid $25.572 million in cash, $3.552 million by issuance of common stock. Additionally, $1.0 million will be held in escrow for 24 months to satisfy potential indemnifications and $8.9 million in contingent consideration based on specific metrics. Porch Group also assumed $8.16 million of debt and $2 million of cash of the acquired business.
Porch Group, Inc. is a provider of a vertical software and insurance platform. The Company offers differentiated products and services, with homeownersâ insurance at the center of this relationship. The Company serves approximately 30,000 companies, such as home inspectors, mortgage companies, and title companies. The Company has two segments: the Vertical Software segment and the Insurance segment. The Vertical Software segment provides software and services to inspection, mortgage and title companies on a subscription and transactional basis. The segment operates several key businesses, including inspection software and services, title insurance software, mortgage software, moving services and others. The Insurance segment provides consumers with insurance and warranty products. The Insurance segment includes Homeowners of America, a wholly owned insurance carrier, Porticus Reinsurance, its Cayman Islands captive reinsurer, and Porch Warranty, among other warranty brands.
Porch Group, Inc. completed the acquisition of Certain Businesses Relating to Home Warranty Products and Inspector-centric Software and Services from Residential Warranty Services, Inc. for $42.3 million.