GOLDEN, Colo. - ServiceMagic Inc. and ImproveNet Inc., two online marketplaces that connect consumers with prescreened residential contractors and home service professionals, announced ServiceMagic will acquire all of the outstanding stock of ImproveNet.

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.

Together, ServiceMagic and ImproveNet will offer residential contractors and home service professionals a complete range of interactive services and solutions for marketing and managing their businesses online, according to both companies. The combined consumer bases and contractor networks are expected to drive more leads to participating contractors and improve choice for consumer members.

"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."

Publication date: 07/11/2005