Publicly traded proptech company Porch Group has been acquiring companies left and right over the past year, and it’s evidently not done yet. The firm announced Wednesday that it has acquired Denver-based digital mortgage automation and point-of-sales software company Floify.
The acquisition cost Porch about $76.5 million in cash and $10 million of Porch’s common stock at closing, according to a press release.
In 2021, Floify’s software, which streamlines the loan origination process by allowing document sharing, and communication between LOs and real estate agents, has helped over 77,000 mortgage applications close each month, according to Porch. Floify was founded in 2012 by Dave Sims, who is CEO of the company.
Floify’s software is used by over 1,500 companies and the company has a 130% annual net revenue retention as of the second quarter, Porch said. Floify’s brand will remain intact and its 47 employees will not be forced to relocate.
Porch, which went public via SPAC in 2020, announced late last year that it was on the hunt to acquire companies that would give the firm more solid footing in the homeownership space.
With the most recent acquisition of Floify, Porch will expand “its early access to high-intent homebuyers who need key services including insurance, warranty and moving services,” the company said in a statement.
According to Porch, approximately 70% of Floify’s transactions this year were on home purchases, which is expected to increase in 2022. Floify projects $15 million of revenue in 2022 and is projected to bring in $2 million in revenue to Porch for the balance of 2021 post-close, Porch told investors.
Matt Ehrlichman, founder and CEO of Porch, remarked that the proptech will be “investing to further help Floify customers stand apart by making the home purchasing and moving process easier for homebuyers.”
“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,” he said. “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.”
In September, the Seattle-based proptech firm acquired home warranty policy provider American Home Protect (AHP). Furthermore, in January the proptech firm acquired home insurance company Homeowners of America for $100 million, mover marketing and data firm V12, home inspection company Palm-Tech and roofing contractor software company iRoofing.
It also previously acquired insurance broker Elite Insurance Group, logistics and moving services firm Kandela and personal services company HireAHelper.
By bundling all of its services, Porch aims to make the “move really easy” for a borrower, said Ehrlichman in a previous interview with HousingWire.
Investors reacted positively to the acquisition, with shares increasing by 12% to $19.93 as of late Thursday morning.