Capstone Partners advised Residential Warranty Services (RWS) on its sale of certain assets to Porch Group, Inc (Porch). Terms of the deal were not disclosed outside of public statements by Porch.
Residential Warranty Services is a national provider of home warranty, service contract, and insurance products and services to homeowners and real estate vendors including home inspectors. RWS offers both core risk management as well as software and marketing services distributed through its real estate agent and home inspector channels.
The company engaged Capstone’s investment banking team to provide sell-side advisory services, who then reached out to the Capstone Financial Advisory Services (FAS) group to provide transaction advisory services as well as additional deal execution support.
Experience matters and the Capstone team showed they have it in a big way in this complex transaction. RWS continues to operate dozens of real estate related entities including most notably PriorityLab and Breeze Environmental Products.
Khelan S. Dattani, Managing Director at Capstone, commented, “We were able to contribute to RWS’s successful M&A transaction by combining investment banking and Financial Advisory Services for this carve out transaction. Nathan has built a successful business in the home warranty and related real estate services space. We believe RWS continues to have significant growth prospects for many years to come given the proportion of the housing finance ecosystem to the overall economy. Porch clearly distinguished itself in the process by understanding the story, being patient through the pandemic and ultimately investing in a high-quality asset that is very strategic to its growth plans.”
The Capstone Partners team that worked on the transaction and the related financial advisory services assignment included Khelan Dattani, Jim Calandra, and Adam Brissette.
Seattle-based Porch Group, Inc. (NASDAQ: PRCH), a leading vertical software platform for the home, provides software and services to more than 24,000 home services companies such as home inspectors, mortgage companies and loan officers, title companies, moving companies, real estate agencies, utility companies, and warranty companies. Through these relationships and its multiple brands, Porch provides a moving concierge service to homebuyers, helping them save time and make better decisions on critical services, including insurance, warranty, moving, security, TV/internet, home repair and improvement, and more.