Dot Comment

ServiceMagic To Acquire ImproveNet

June 30, 2005
/ Print / Reprints /
/ Text Size+
GOLDEN, Colo., and Scottsdale, Ariz. - ServiceMagic® Inc. and ImproveNet Inc., two online marketplaces that connect consumers with prescreened residential contractors and home service professionals, announced that they have entered into an agreement whereby ServiceMagic will acquire all of the outstanding stock of ImproveNet.

The combination will create a new, "comprehensive and targeted" Internet marketing solution for residential contractors, say the companies. ServiceMagic has agreed to buy all of the outstanding shares and in-the-money warrants and stock options of ImproveNet for approximately $6.72 million in cash or approximately $.12 per share.

Together, ServiceMagic and ImproveNet will offer residential contractors and home service professionals a range of interactive services and solutions for marketing and managing their businesses online. The combined consumer bases and contractor networks are expected to drive more leads to participating contractors and improve choice for consumer members. The increased demand is projected to result in more than 165,000 consumer service requests every month to member contractors, which represents an estimated $400 million in monthly home improvement related spending by homeowners.

"By joining forces with ImproveNet, we will be well positioned to capitalize on the growing number of consumers seeking home service professionals and information on home improvement projects through the Internet," said Rodney Rice, co-CEO of ServiceMagic. "Our combined resources will improve both of our existing services to meet our growing consumer demand."

Subject to completion of the transaction, ImproveNet business lines will transition to ServiceMagic, including, AdServePROâ„¢,, 1-800-Contractor, and The transaction is expected to close in the third quarter of 2005, at which point the services will be combined.

"We are excited to join forces with ServiceMagic," said Jeffrey Rassas, CEO of ImproveNet. "We believe this combination will drive significantly greater lead flow to our contractors, increased exposure for advertising partners, and improved choice for our homeowners."

The transaction is subject to customary closing conditions, including approval of ImproveNet's shareholders, which if not satisfied in the anticipated timeframe would cause an extension of the expected close date. Under a separate agreement, certain members of ImproveNet's senior management, each of whom are significant shareholders of ImproveNet, have agreed to support the transaction.

Publication date: 07/04/2005

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.



Image Galleries

Mini Split Installation

Twin Cities contractor Aabott Ferraro helped retrofit an older St. Paul home.


NEWSMakers: Doug Dougherty

Doug Dougherty, president and CEO of the Geothermal Exchange Organization (GEO) joins the program to discuss the latest happenings with GEO, including the drive to get included in state and federal definitions of renewable energy, plus the future of geothermal.  Posted on July 25.

More Podcasts


NEWS 07-28-14 cover

2014 July 28

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe


Some in the industry are calling for the EPA to halt production of R-22 as of 2015. What do you think?
View Results Poll Archive


2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con