Watch for regulatory approval from the Texas Department of Insurance and the timing of the Q1 2027 close. The ATM Program filing provides flexibility for the Reciprocal to sell PRCH shares to add growth capital to statutory surplus. Monitor integration progress and any adjustments to the purchase price based on ATIC's statutory surplus at close.
Price Chart
Executive Summary
Porch Group, through its Reciprocal and HOA Holdco, entered into a definitive agreement to acquire Allied Trust's insurance carrier (ATIC), managing general agent (AU MGA), and captive reinsurer (Lonestar) for total consideration of $200 million, subject to adjustments. The acquisition is expected to add ~$200M in Reciprocal Written Premium and ~$25M in Adjusted EBITDA (Excluding Reciprocal) in the first full year post-close, with closing targeted for Q1 2027 pending Texas Department of Insurance approval. The deal is funded via a mix of cash and up to $70M in PRCH stock, and the company also announced plans to file an at-the-market equity offering program.
Key Financial Metrics
Key Facts
- Total consideration of $200.0 million for acquisition of Allied Trust's insurance carrier, MGA, and captive reinsurer.
- Reciprocal pays $55M cash at close plus $50M deferred over 12 months for ATIC; HOA Holdco pays $95M at close for AU MGA and Lonestar.
- Up to $20M of HOA Holdco's closing payment and up to $50M of Reciprocal's deferred payments may be satisfied in PRCH stock.
- Expected to add ~$200M in Reciprocal Written Premium and ~$25M Adjusted EBITDA (Excluding Reciprocal) in first full year post-close.
- Closing expected Q1 2027, not earlier than January 1, 2027, subject to Texas Department of Insurance approval.
- Company plans to file an at-the-market equity offering program for PRCH shares.
- Acquisition multiple of less than 4x based on expected first-year Adjusted EBITDA (Excluding Reciprocal) contribution.
Financial Impact
$200 million total consideration; expected ~$200M RWP and ~$25M Adjusted EBITDA (Excluding Reciprocal) contribution in first full year post-close; less than 4x acquisition multiple
Risk Factors
- Regulatory approval from Texas Department of Insurance may be delayed or impose conditions.
- Integration risks and failure to realize expected synergies or cost savings.
- Potential dilution from up to $70M in PRCH stock issuance and future ATM sales.
- Catastrophe and severe weather exposure in acquired insurance book (Louisiana, Texas, etc.).
- Adjustments to purchase price based on ATIC's statutory surplus could reduce deal value.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001784535-26-000054 |
| Document: prch-20261013.htm | 0001784535-26-000054 |
| Document: prch-20261013xexx991.htm | 0001784535-26-000054 |
| Document: 0001784535-26-000054-index-headers.html | 0001784535-26-000054 |
| Document: 0001784535-26-000054-index.html | 0001784535-26-000054 |
| Document: 0001784535-26-000054.txt | 0001784535-26-000054 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | Insider Cluster | $18.11 | awaiting T+5 | — | $17.65 (+2.54%) |
Oct 20, 2026 5d ago | Insider Cluster | $18.59 | awaiting T+5 | — | $17.65 (−5.06%) |
Oct 13, 2026 12d ago | 8-K | $16.44 $18.59 | ▲ +13.08% | ▲ +12.62% | $17.65 (+7.36%) |
Oct 6, 2026 19d ago | 144 | $17.31 $16.44 | ▼ −5.03% | ▼ −4.05% | $17.65 (+1.96%) |
Oct 5, 2026 21d ago | 144 | $17.35 $17.69 | ▲ +1.96% | ▲ +1.54% | $17.65 (+1.73%) |
Sep 16, 2026 5w ago | Insider Cluster | $15.98 $16.47 | ▼ −3.07% | ▼ −2.47% | $17.65 (−10.45%) |
Jun 11, 2026 19w ago | 8-K | $9.72 $12.25 | ▲ +26.03% | ▲ +25.60% | $17.65 (+81.58%) |
May 28, 2026 21w ago | Insider Cluster | $10.42 $9.26 | ▲ +11.13% | ▲ +8.61% | $17.65 (−69.39%) |
May 21, 2026 22w ago | Insider Cluster | $9.56 $11.03 | ▼ −15.38% | ▼ −13.72% | $17.65 (−84.62%) |
May 19, 2026 22w ago | Insider Cluster | $9.74 $10.34 | ▲ +6.16% | ▲ +4.36% | $17.65 (+81.21%) |
US Market Status
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