Porch Group Announces Agreement to Acquire Allied Trust
Porch Group and its Reciprocal signed a definitive agreement to acquire Allied Trust's insurance carrier and managing general agency, expanding coverage into Louisiana, Texas, South Carolina, and North Carolina. The deal is expected to add roughly $200 million of Reciprocal Written Premium and $25 million of Adjusted EBITDA (Excluding Reciprocal) in the first full year, at an acquisition multiple under four times for Porch Group. Total consideration includes a $55M base cash price plus $50M deferred for the carrier, and $95M ($75M cash + $20M PRCH shares) for the MGA, with closing expected in Q1 2027 pending regulatory approvals.
Key figures
- Guidance
- Assuming Jan 1, 2027 close: 2027 targets of more than $900M Reciprocal Written Premium, more than 360K Reciprocal Policies Written, and more than $180M Adjusted EBITDA (Excluding Reciprocal)
- Deal Value Usd
- $205 million (insurance carrier: $55M base cash plus $50M deferred; MGA and captive: $95M)
- Expected close
- Q1 2027
- Mga base price
- $95 million ($75M cash + expected $20M PRCH shares)
- Acquisition multiple
- less than four times
- Adjusted ebitda added
- $25 million
- Deferred consideration
- $50 million
- Reciprocal written premium added
- $200 million
AI analysis
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