IAC/InterActiveCorp Acquires ServiceMagic, Inc.
IAC/InterActiveCorp (NASDAQ: IACI) today announced an agreement to acquire ServiceMagic, Inc., the nation's leading online home services marketplace, in a cash transaction. Terms of the agreement were not disclosed. ServiceMagic will remain an independent brand within the IAC Local and Media Services Group.
ServiceMagic, founded in 1999, connects homeowners with prescreened and customer-rated residential contractors, real estate professionals and lenders. Nearly 50,000 service professionals utilize ServiceMagic to find targeted leads for home building, remodeling, architectural services, roofing, fences, decks, painting, flooring, plumbing, landscaping and much more. Since its inception, ServiceMagic has facilitated more than 2.4 million consumer requests for home services, representing an estimated $8.4 billion in consumer spending nationwide.
Anne Busquet, CEO of IAC Local and Media Services, said, "The migration of local advertising from offline to online has tremendous growth potential and is applicable to hundreds of industries, but has been realized by only a few. ServiceMagic has created a highly scalable system that provides consumers convenience, confidence and choice in purchasing home-related services while driving down marketing costs for local service businesses via targeted advertising. The IAC Local and Media Services Group was formed to provide consumers with information, ratings, advice, connections and access wherever they are and wherever they are going so they can make well-informed decisions. We are pleased that ServiceMagic will join Citysearch, Evite, Entertainment Publications Inc. and TripAdvisor as part of our mission to efficiently connect merchants with the millions of consumers who want their services."
The company launched ServiceMagic Real Estate in mid-2002 in an effort to address the large and fragmented residential real estate market. In October 2003 the company launched ServiceMagic Lending, offering consumers convenient access to prescreened lenders for home mortgages, refinance loans and home equity loans. Upon closing of the acquisition, management of ServiceMagic's lending and real estate businesses will fall under the IAC Financial Services and Real Estate Group.
ServiceMagic co-CEO and co-founder Michael Beaudoin said, "We launched ServiceMagic with the belief that there was a better way to connect homeowners with quality, reputable service professionals. IAC's extensive consumer reach and merchant relationships give us the opportunity to significantly accelerate our mission to revolutionize how people buy and sell local services and to expand to the many other business arenas that can benefit from our efficient customer acquisition platform."
The transaction is expected to close in the third quarter of 2004. About IAC/InterActiveCorp
IAC/InterActiveCorp (NASDAQ: IACI) is the world's leading multi-brand interactive commerce company. IAC consists of IAC Travel, which includes Expedia, Inc., Hotels.com, Hotwire, Interval International, and TV Travel Shop; HSN; Ticketmaster, which oversees ReserveAmerica; Match.com; LendingTree; Precision Response Corporation; IAC Local and Media Services, which includes Citysearch, Evite, Entertainment Publications, Inc. and TripAdvisor, Inc.; and IAC Interactive Development which includes ZeroDegrees. iac.com
About ServiceMagic, Inc.
ServiceMagic, Inc., headquartered in Golden, Colo., is the nation's leading online marketplace connecting homeowners with prescreened and customer-rated residential contractors, real estate professionals and lenders. The company has raised more than $48 million in capital, increased revenue 100 percent on a year-over-year basis since 2000, and achieved $20 million in revenue and profitable operations in 2003.
Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements relating to IAC's anticipated financial performance, business prospects, new developments and similar matters, and/or statements preceded by, followed by or that include the words "believes," "could," "expects," "anticipates," "estimates," "intends," "plans," "projects," "seeks," or similar expressions. These forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those suggested by the forward-looking statements due to a variety of factors, including changes in business, political, and economic conditions due to the threat of future terrorist activity, actions and initiatives by current and potential competitors, the effect of current and future legislation or regulation, the ability to expand our reach into international markets, and certain other additional factors described in IAC's filings with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on IAC's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. IAC is not under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.
Contacts: IAC Corporate Communications Deborah Roth or Andrea Riggs (212) 314-7251 IAC Investor Relations Roger Clark or Lauren Porat (212) 314-7400 LendingTree Corporate Communications Mindy Neubauer (704) 944-8541 ServiceMagic Corporate Communications Elaine Schoch (303) 963-8028
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CONTACT: Deborah Roth, or Andrea Riggs, both of IAC Corporate
Communications, +1-212-314-7251, or Roger Clark, or Lauren Porat, both of IAC
Investor Relations, +1-212-314-7400; or Mindy Neubauer of LendingTree
Corporate Communications, +1-704-944-8541; or Elaine Schoch of ServiceMagic
Corporate Communications, +1-303-963-8028