EverQuote to acquire PolicyFuel
EverQuote has signed a definitive agreement to acquire PolicyFuel and its affiliated entities. PolicyFuel provides “policy-sales-as-a-service” offerings to P&C carrier clients in the form of dedicated advisor teams that focus exclusively on selling each provider’s own insurance products to its target consumers.
The Company’s PSaaS offerings enable its carrier clients to complement their own call center operations. In addition to its PSaaS offerings, PolicyFuel also provides select carrier clients with warm transfer call services. EverQuote expects the company’s expertise in this area will enhance similar offerings currently provided by EverQuote. The company reported trailing twelve months revenue through March 31, 2021 of approximately $10 million and is modestly profitable.
EverQuote will pay approximately $16 million in cash at closing to acquire PolicyFuel, subject to certain working capital and other adjustments, with additional potential consideration to be paid in EverQuote common stock over three years contingent on the company achieving growth targets for scaling their PSaaS operations. EverQuote expects the acquisition to close by the end of the third quarter, subject to customary closing conditions.
“The acquisition of PolicyFuel enables EverQuote to expand its range of products offered to support the growth of its P&C carrier partners; increase the range of personalized shopping experiences provided to its consumers; and broaden its ability to access the $135 billion commission TAM component of the overall insurance distribution spend shifting online. PolicyFuel positions EverQuote to participate in the commission portion within P&C insurance verticals in a manner that complements the existing services offered to carriers and third-party agents in our marketplace. PolicyFuel’s PSaaS offerings for P&C markets extends EverQuote’s existing Direct-To-Consumer Agency (“DTCA”) strategy in our Health and Life insurance verticals, in which our tech-driven first-party distribution platforms have improved consumer experience, provider bind performance and our own monetization.” – Jayme Mendal, CEO of EverQuote.
”We have enjoyed a highly productive relationship for several years with EverQuote, who is a leader in the online insurance marketplace. We have long-admired their data and tech-driven approach; both organizations share an entrepreneurial spirit and passion for driving innovation in the insurance industry by partnering with carriers to grow their businesses and delivering a better shopping experience to consumers.” – Tim Presto, CEO of PolicyFuel.