Porch Group, which works in virtual software for the home services industry, has bought digital mortgage automation and point-of-sale (POS) company Floify, according to a Wednesday (Oct. 27) press release.
The acquisition cost Porch $76.5 million in cash and $10 million of Porch’s common stock, the release stated.
Porch has been looking to provide software to companies in various stages of the homebuying process, and this acquisition will expand Porch’s access to homebuyers who are looking for several services, including insurance, warranty and moving services, according to the release.
“Floify has an impressive presence and unique position in the mortgage origination software business,” said Porch Founder, Chairman and CEO Matt Ehrlichman in the release. “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.”
Ehrlichman said in the release that he wants to invest more and help Floify customers by making the home purchasing and moving process easier.
“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,” he said in the release.
The strategic idea behind the buy is to give Porch a way into the mortgage origination market, as Floify has a solution to assist with simplifying the process, according to the release. The acquisition will also enhance Porch’s early access to homebuyers, as around 70% of Floify’s transactions this year have been from home purchases.
Porch wants to expand Floify’s offerings to assist mortgage companies with additional services, offering them assistance on insurance, home warranty, TV and internet, moving and more, the release stated.
In February, Ehrlichman told PYMNTS that statistically, of the most stressful things people listed in their lives, moving came just behind either the death of a family member or getting a divorce.
Because of that, Ehrlichman said Porch is trying to improve the moving process, making sure it runs more smoothly.