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FT Partners Advises Porch on its $1,079,000,000 SPAC Business Combination with PropTech Acquisition Corp.

Overview of Transaction

  • On July 31, 2020, PropTech Acquisition Corporation (“PropTech”), a special purpose acquisition company (“SPAC”) announced a definitive merger agreement with Porch.com, Inc. (“Porch”)
  • The business combination was completed on December 23, 2020, PropTech changed its name to Porch, and its common stock is scheduled to begin trading on the Nasdaq Stock Market under the ticker symbol “PRCH” on December 24, 2020
  • The deal represents a post-transaction equity value of $1.079 billion
  • Transaction includes a $150 million fully committed common stock private investment at $10 per share led by Wellington Management Company, LLP
  • Porch is a unique home services platform that provides leading ERP and CRM software to 11,000 inspection, moving and adjacent home services companies, gaining access to a proprietary and recurring sales funnel which captures a majority of homebuyers in the U.S. annually

Significance of Transaction

  • While creating significant liquidity for existing shareholders, Porch’s Management team will continue to lead the merged Company as over 92% of their existing equity is expected to be rolled as part of the transaction
  • The net proceeds raised from the transaction will be used to support Porch’s working capital, pay down debt and fund expansion through acquisitions

FT Partners' Role

  • FT Partners served as exclusive strategic and financial advisor to Porch
  • Builds on FT Partners' expertise in navigating the unique process in selling companies to SPACs, and follows highly successful sales of FT Partners’ clients Open Lending, CardConnect and REPAY
  1. Post transaction equity value is based on PTAC’s closing stock price as of December 23, 2020 of $14.81 and total shares of 72.8mm, which include Porch’s equity rollover of 36.3mm shares, PTAC public shares of 17.2mm, PTAC Sponsor shares of 4.3mm, and PIPE shares of 15mm. Total shares of 72.8mm used in the calculation of equity value excludes unvested restricted shares, options and RSUs, management incentive plan, and 6.15 million restricted shares issued at the closing of the transaction that are subject to forfeiture should the company not meet certain stock trading price hurdles (one-third during the three-year post-closing period at each of $18.00, $20.00 and $22.00 per share). The transaction was initially announced at a value of $523 million.