Porch Group acquires CSE and AHP for $94 million

Porch Group announced two strategic acquisitions. The company is acquiring CSE from Covéa for $48.6 million and American Home Protect for $38.6 million upfront.

CSE Insurance is a California-based personal lines insurer focused on property and auto. It operates in six states, including its primary focus of California, as well as Arizona, Nevada, and Utah, and is licensed in an additional 6 states.

With this acquisition, Porch will expand the number of states where it operates as a full-stack managing general agency and carrier – specifically entering the California market. “CSE will bring to Porch significant historical performance data as well as market experience in California, which is the largest homeowners’ insurance market in the US.”

Porch is also acquiring American Home Protect (AHP), a Plano, Texas-based provider of whole home warranty policies across the US. AHP currently provides home warranty policies in 45 states and is in the process of obtaining licenses in an additional four states. The deal is valued at $45.85 million (“The purchase price for AHP was $38.6 million upfront, $3 million of deferred cash consideration held back to be paid in 24 months, and a $4.25 million transaction expense to key employees.”)

Founded in 2013, Porch Group is a vertical software platform for the home. It provides software and services to more than 10,500 home services companies such as home inspectors, moving companies, real estate agencies, utility companies, and warranty companies.