Porch isn’t wasting time on the acquisition front: Just three weeks after going public, the home-services startup scooped up four companies for $122 million.
The Seattle-based company said it inked a deal to buy Homeowners of America, a Texas insurance company, for $100 million in cash and stock, Geekwire reported. It will also buy V12, a marketing platform, for $22 million in cash, plus two smaller startups — PalmTech and iRoofing — for an undisclosed sum.
Porch went public last year after merging with Proptech Acquisition Corp., a blank-check firm formed by Abu Dhabi Investment Authority veterans Tom Hennessy and Joe Beck. The deal helped Porch raise $322 million, and its valuation soared to more than $1 billion on its first day of trading.
The influx of cash came just in time: Company accountants said recurring losses raised “substantial doubt” about Porch’s ability to continue, according to its IPO filing.
Porch’s preliminary results for 2020, which it disclosed on Thursday, project a net loss of between $53 million to $55 million — $20 million more than previously estimated, according to Geekwire. Executives attributed the higher losses to sales and marketing and R&D spending.
Porch is projecting $170 million in 2021 revenue, up from an earlier projection of $120 million. It is expecting $72 million in revenue for 2020.
[Geekwire] — E.B. Solomont