Porch Group acquires Floify
Porch Group, “a leading vertical software and InsurTech company reinventing the home services industry,” announced the acquisition of Floify, a provider of digital mortgage automation and point-of-sale software for mortgage companies and loan officers. The acquisition continues Porch’s strategy of providing software to companies involved in key moments of the homebuying process such as home inspectors, title companies, and moving companies.
Porch acquired Floify for $76.5 million of cash and $10 million of Porch common stock at closing. Porch is guaranteeing Floify that the $10 million of Porch common stock will double in value by the end of 2024 with respect to any such Porch shares retained by the sellers throughout that period. This guaranty will be marked to market quarterly through Porch’s P&L in accordance with GAAP.
Founded in 2012, Boulder-based Floify is a profitable company with around 40 employees. Loan officers use Floify to collect and verify borrower documentation, track loan progress, communicate with borrowers and real estate agents, and close loans. During 2021, Floify has helped these loan officers process on average 77,000 mortgage applications each month and approximately 70% of the company’s transactions in 2021 were from home purchases. The company has more than 1,500 clients and it expects $15 million of revenue in 2022.
“Floify has an impressive presence and unique position in the mortgage origination software business. There are very few companies providing software to loan officers to help improve the borrower experience, and we are excited for Porch to now be one of the major players in this vertical. We look forward to investing to further to help Floify customers stand apart by making the home purchasing and moving process easier for homebuyers. With this acquisition, Porch now has a leadership position in providing software to most of the key fragmented home services industries where companies work with homebuyers at key moments in the home journey.” – Matt Ehrlichman, Porch founder, chairman and CEO.
