Porch Group May Pay Up To $50 Million Of Allied Trust Price In Shares Its Exchange Holds
The $105.0 million Allied Trust purchase could be partly paid in Porch stock that has no vote today but regains one once the seller owns it.
Porch Group, the homeowners insurer that also sells software and services to home buyers, plans to buy Allied Trust and two affiliates for about $200 million, and part of the bill can be paid in stock, according to its 10-Q filed Wednesday.
Two buyers, two price tags
Under an agreement signed October 13, Porch's wholly owned subsidiary Homeowners of America Holding Corporation will buy Allied Underwriters and Lonestar Lagniappe Reinsurance for about $95.0 million at closing. Porch Reciprocal Exchange, the policyholder-owned insurer Porch manages but does not own, will buy Allied Trust Insurance Company for about $105.0 million.
Of the Reciprocal's price, $55.0 million is cash at closing. The other $50.0 million is due in roughly equal monthly installments over the twelve months after closing, or sooner at the Reciprocal's choice. The Reciprocal may pay up to $50.0 million of those installments in Porch shares it already holds.
Up to $20.0 million of the subsidiary's payment may be in new Porch stock. The number of shares depends on the Nasdaq closing price the business day before each payment, and the filing says it cannot yet be determined.
Shares that gain a vote
The Reciprocal's Porch shares carry limits today. Delaware law bars them from voting or counting toward a quorum, and much of their value is excluded from the Reciprocal's statutory admitted assets. Once transferred to the seller, the filing says, those restrictions no longer apply.
The Reciprocal still holds about 16.2 million Porch shares, the pool such payments would draw from. In June 2026, Porch's captive reinsurer bought about 2.1 million shares back from the Reciprocal for about $15.0 million, or $7.17 per share, to lift the Reciprocal's statutory surplus. That surplus stood at $174.4 million on September 30.
Timing and the Texas hurdle
The deal cannot close before January 1, 2027, and Porch expects a first-quarter 2027 close. The filing's forward-looking risks cite failure to win approval from the Texas Department of Insurance as a way the deal could fall through, and the price adjusts for closing debt and Allied Trust's statutory surplus.
Porch's prior quarterly report predates the agreement. The company also reported third-quarter revenue of $143.9 million, up 13%, and net income attributable to Porch of $12.2 million.
Porch's market value stood at $2.0 billion in Wednesday's report, and the closing share count will hinge on its stock price on each payment date.
Sources
- 10-Q Filing — Porch Group (PRCH) — SEC EDGAR
- 10-Q Filing — Porch Group (PRCH), Q2 FY2026 filed 2026-07-29 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, prch-20261028xexx991.htm) — Porch Group, filed 2026-10-28 — SEC EDGAR
- Porch Group GAAP EPS of $0.10 beats by $0.08, revenue of $143.9M beats by $10.46M (NASDAQ:PRCH) | Seeking Alpha — seekingalpha.com
- Oppenheimer's top 50 small- and mid-cap Buy list (IWM:NYSEARCA) | Seeking Alpha — seekingalpha.com
