Porch Group Closes Residential Warranty Services (RWS) Acquisition, Strengthening Market-Leading Position in the Strategic Home Inspection Industry
SEATTLE, April 04, 2022 (GLOBE NEWSWIRE) -- Porch Group, Inc. (“Porch” or “the Company”) (NASDAQ: PRCH), a leading vertical software company reinventing the home services industry, successfully completed its previously announced acquisition of the home warranty and inspection software and services businesses from Residential Warranty Services (RWS) on April 1, 2022. The acquisition further enhances Porch’s ability to add value to home inspectors and enhances full home warranty capabilities.
The acquired businesses provide customer relationship management (CRM) software, recall check software and a unique 90-day warranty product through more than 1,000 home inspection companies. RWS distributes annual home warranty products through a nationwide network of real estate agents.
Total consideration in the transaction is $33 million, including $29 million of cash, $4 million of Porch common stock and additional contingent consideration tied to the performance of a recently launched business line. Porch expects RWS to contribute approximately $8 million of revenue in 2022 based on annualized revenue of $10 million, in line with previously communicated expectations at time of signing.
“We have worked with the RWS team for many years and their addition to Porch greatly bolsters our leadership position in the strategic home inspection industry,” said Matt Ehrlichman, Founder, Chairman and CEO. “Over the last several quarters, we have realized rapid growth through the expansion of our service offerings, and RWS accelerates our warranty business and strategy. RWS inspection and warranty products strategically align with Porch’s offerings, giving us confidence in our ability to drive growth in 2022 and beyond.”
About Porch Group
Seattle-based Porch Group, the vertical software platform for the home, provides software and services to more than 24,000 home services companies such as home inspectors, mortgage companies and loan officers, title companies, moving companies, real estate agencies, utility companies, and warranty companies. Through these relationships and its multiple brands, Porch provides a moving concierge service to homebuyers, helping them save time and make better decisions on critical services, including insurance, warranty, moving, security, TV/internet, home repair and improvement, and more. To learn more about Porch, visit porchgroup.com or porch.com.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “intend, “demonstrate,” “expect,” “estimate,” “anticipate,” “should” and “likely” and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. Other factors may cause Porch’s actual results to differ materially from those expressed or implied in the forward-looking statements and such factors are discussed in Porch’s filings with the U.S. Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and subsequent reports filed by Porch with the SEC. Copies of Porch’s filings with the SEC may be obtained at the “Investors” section of Porch’s website at ir.porchgroup.com or on the SEC’s website at www.sec.gov.
The forward-looking statements included in this announcement are made as of the date hereof. Porch is not under any obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise, except as otherwise may be required by the federal securities laws.
Investor Relations Contact:
Walter Ruddy, Head of Investor Relations & Treasury
Matt Glover and Alex Thompson
Gateway Group, Inc.
Porch Press contact:
Gateway Group, Inc.
Released April 4, 2022