SEATTLE — Porch Group Inc., a leading vertical software company reinventing the home services industry, announced four strategic acquisitions that strengthen the company’s rapidly expanding platform for home service companies and homeowners.
Among those acquisitions were the strategic acquisitions of PalmTech and iRoofing. Both acquisitions are consistent with Porch’s strategy to go deeper into existing industries and expand its vertical software platform into new home service categories.
iRoofing provides an all-in-one Software-as-a-Service (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. Porch expects to accelerate iRoofing’s growth by providing its contractors the ability to help consumers save money on home insurance after completing their new roof installation project.
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. Porch expects to execute its playbook by providing PalmTech the ability to help its consumers with key move-related transactions such as insurance.
Porch is also acquiring Homeowners of America (HOA) and V12 for a combined $122 million. 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. V12 is a fully scaled SaaS marketing and data platform with tools to help brands connect with and engage consumers at key purchasing decision points, such as moving. With these acquisitions, Porch is increasing its 2021 revenue guidance from $120 million to $170 million.
"Porch’s business model produces a highly recurring or reoccurring stream of homebuyers that are candidates for HOA and V12 services," said Porch CFO Marty Heimbigner in a written statement. "Over time, we believe we will be able to accelerate the revenue growth of the newly acquired companies to our long-term target of 30% and believe these acquisitions are synergistic and accretive for our shareholders."