EverQuote, Inc. (EVER) commenced the month completing acquisition of Evansville, Indiana-based leading health insurance agency Crosspointe Insurance & Financial Services, LLC.
The Cambridge, Massachusetts-based EverQuote is operator of an online insurance marketplace connecting consumers with insurance agencies and provides them free service that helps consumers compare quotes on auto insurance.
The company closed the transaction of September 2, 2020 and funded the acquisition utilizing cash on the balance sheet.
EverQuote’s CEO, Seth Birnbaum welcomed Crosspointe’s entire team and especially Josh and Drew to EverQuote. Crosspointe is similarly passionate about accelerating innovation and business strategies in tenacity, bootstrapping, heart and data optimization. With close of this acquisition deal, EverQuote is now in better position to step up and further excel in health insurance market. The acquisition will help us in providing insurance seekers with variety of health insurance products. They will now have an access to our large network carrier partners and to a platform which will provide them an advanced and improved personalized buying experience.
The acquisition will provide EverQuote with an access to the $130 billion commission total-available-market (TAM) component of overall distribution spending in the insurance industry which is shifting onto online platforms. EverQuote is expecting an increased per quote revenue in its health insurance vertical, which will make company revenue grow further and be diversified.
The company at the time of releasing its quarterly report last month has also shared guidelines for third quarter as well as for whole year 2020. For third quarter company was anticipating revenues in the range of $84 to $86 million where as full year anticipation for the same was $331-$336 million. Company projected the variable market margin to be $26.5-$28 million while expecting EBITDA of $4 to $5 million on an adjustment basis. For complete year 2020, projection for variable market margin was$101-$104.5 million while that for EBITDA was $15-$17.5 million.