MEMPHIS, Tenn. — Tennessee-based Frontdoor Inc. announced Tuesday, June 4, a deal in place to acquire Denver-based 2-10 Home Buyers Warranty.
Frontdoor’s agreement to acquire 2-10 Home Buyers is an all-cash transaction valued at $585 million, according to a news release. The deal also includes a potential $30 million termination fee.
The deal is expected to close in the fourth quarter of 2024, pending regulatory approval and additional customary closing conditions.
2-10 Home Buyers' main line of business is new home structural warranty protection plans. They provide insurance-backed options for builders’ coverage for structural failures. Frontdoor (Nasdaq: FTDR) is the parent company of two brands: American Home Shield, a home service plan with 2 million members, and Frontdoor, an app for home maintenance and repairs.
About 20% of new homes built in the U.S. are covered by a 2-10 Home Buyers new home structural warranty, according to the release. Most of the company’s new home revenue is from repeat business with builder partners or multiyear agreements with builders.
The company also offers more traditional home warranties for the consumer market.
> Read the full story at the Denver Business Journal.
EV TAX CREDIT: 'My claim got rejected': Some EV owners say Colorado wrongfully denied $5,000 tax credit
HAILSTORM AFTERMATH: Roofing companies busy after widespread hail hits Colorado
'HEY, GOAT': 700 goats take down vegetation near Louisville to help fight wildfires before they start
SUGGESTED VIDEOS: Latest from 9NEWS
> Top stories from 9NEWS curated daily just for you! Sign up for the 9NEWSLETTER right now to get can’t-miss stories, Next and Broncos content, weather and more delivered right to your inbox.
