Massive shakeup in the local contractor referral marketplace. Home Advisor’s parent company IAC has just acquired Angie’s List. This effectively will become a single publicly-traded lead generation powerhouse for local marketplaces.
We’ve been testing the market with Home Advisor, thus far without spectacular results. But as a combined entity, this could be a much more relevant and important source of leads to local contractors.
IAC is buying Angie’s List and will combine it with its own home services lead-gen site, HomeAdvisor, in a deal worth in excess of $500 million. The merged entity will then be spun out as a new public company: ANGI Homeservices Inc.
IAC had been seeking to acquire Angie’s List since about November 2015 for roughly the same price. Angie’s List’s board initially resisted the takeover. However, Angie’s List’s growth had stalled, and the company had come under increasing pressure from activist investors. The deal is expected to close later this year, with HomeAdvisor’s CEO Chris Terrill becoming the new CEO of the new entity.
Angie’s List and HomeAdvisor were essentially direct competitors in the massive home services market. Reportedly, both consumer brands will continue to exist.