Porch Group to Acquire Allied Trust in Strategic Expansion
PRCH has more than doubled off its 52-week low of $6.36.
Summary
Porch Group announced an agreement to acquire Allied Trust, a regional insurance carrier operating in Louisiana, Texas, South Carolina and North Carolina. Porch Group Reciprocal will acquire Allied Trust's insurance carrier for an initial base price of $55 million in cash, and Porch Group will acquire Allied Trust's managing general agency. The acquisition adds approximately $200 million of RWP and approximately $25 million of adjusted EBITDA, with expected contributions reflecting the first full year following closing and planned portfolio optimization. Following closing, Allied Trust is expected to operate under the same structure as Porch's existing insurance business. The acquisition expands Porch's insurance services footprint, which has been the primary driver of its recent EBITDA growth. This follows a strong Q2 where adjusted EBITDA reached $39.1 million, up 150% year-over-year. The deal is likely to be accretive to the insurance segment, though integration risk remains.
At the time of this announcement, PRCH was trading at $17.22 on NASDAQ in the Technology sector, with a market capitalization of approximately $2B. The 52-week trading range was $6.36 to $18.37. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.