Porch Group to Acquire Allied Trust in Deal Expanding Insurance Scale

Porch Group, Inc. (PRCH) has reached an agreement for its Reciprocal and the company to acquire Allied Trust's insurance carrier and managing general agent operations. Under the terms of the agreement, Allied Trust's carrier will be purchased by Porch Group's Reciprocal for $55 million in upfront cash plus $50 million in deferred consideration, which can be paid in cash or shares. Additionally, Porch Group will acquire the managing general agent and captive business for $95 million, consisting of $75 million in cash and approximately $20 million in common shares.

The deal broadens the company's homeowners insurance scale and expands its service reach into Louisiana. In the first full year following completion, the transaction is expected to generate approximately $200 million in Reciprocal Written Premium and add around $25 million in adjusted EBITDA, excluding the Reciprocal. The managing general agent transaction carries an accretive implied purchase multiple of under four times adjusted EBITDA, lifted by high-margin fees and commissions.

Completion of the deal is targeted for the first quarter of 2027, pending regulatory approvals and standard closing requirements. Porch Group also announced plans to file an at-the-market equity program, which will allow for potential future share sales to manage capital. Shares of Porch Group were down 2.29% at $17.29 following the report.