Porch Group to Buy Allied Trust in Mixed $105 Million Deal
The purchase is expected to add about $200 million of Reciprocal written premium and $25 million of Adjusted EBITDA in the first full year after closing.
Porch Group, Inc. (PRCH) agreed to acquire Allied Trust, an insurance carrier, in a mixed cash-and-stock deal that is expected to expand its Insurance Services business into Louisiana.
The agreement provides an initial base price of $55 million in cash, subject to adjustments for the carrier’s statutory surplus and indebtedness at closing, plus $50 million of deferred consideration payable over the 12 months following closing. The Reciprocal may elect to pay that deferred amount in cash or in the largely non-admitted PRCH shares it holds. The transaction is expected to close in the first quarter of 2027.
The deal is expected to add approximately $200 million in Reciprocal Written Premium and $25 million of Adjusted EBITDA (Excluding Reciprocal) in the first full year following closing.
“Allied Trust is a strong strategic fit for Porch and the Reciprocal, and we are excited about the opportunity to add a high-quality insurance business,” said Matt Ehrlichman, Chief Executive Officer of Porch Group.
The deferred-payment option and the surplus-and-indebtedness adjustment give the Reciprocal a flexible settlement path rather than a single all-cash or all-stock close. The $50 million deferred slice is payable over the 12 months after closing, and the Reciprocal may elect cash or the largely non-admitted PRCH shares it holds.
The first-quarter 2027 close leaves room for the customary closing conditions that accompany a mixed-consideration insurance purchase. The $55 million initial base price remains subject to adjustments for the carrier’s statutory surplus and indebtedness at closing.