Merger creates clear leader in home services category
Rivals HomeAdvisor Inc. (an operating business of IAC) and Angie's List are merging to become a new, publicly traded company called ANGI Homeservices Inc., with the deal expected to close late this year.
Based in Colorado, the combined business will maintain both brands to offer "unparalleled scale and product breadth to match homeowners with service professionals in the $400 billion domestic homes services market," according to a news release announcing the agreement. Pre-screened home improvement professionals will be able to get exposure across both brands by just joining one company.
Homeowners will be able to tap into HomeAdvisor's network of more than 156,000 active, high quality service professionals, along with the more than 55,000 contractors on Angie's List. Together, the companies attract more than 22 million monthly users. In 2016, their services were credited with helping customers undertake home improvement projects valued at $17 billion.
HomeAdvisor CTO Brandon Ridenour said that company's emphasis on technology, including its Instant Booking and Instant Connect features to make choosing a reliable home improvement contractor as "frictionless" as possible will extend to Angie's List. "We don't think the directory model is going away," he commented, adding, "We think we'll be able to overlay a lot more ways in which homeowners and other buyers will be able to choose."
HomeAdvisor CEO Chris Terrill will continue in that role post-merger, while IAC InterActive CEO Joe Levin will become chairman of its board. ANGI Homeservices will be a publicly traded company.
"We've only just scratched the surface of this tremendous market opportunity, given 90 percent of home improvement transactions are still generated via word-of-mouth," Terrill said. "The combined company will be able to leverage its joint models and resources to not only accelerate market penetration, but also continued online conversion of that marketplace."