IAC/InterActiveCorp Acquires ServiceMagic
ServiceMagic connects homeowners with prescreened and customer-rated residential contractors, real estate professionals and lenders. They are the market leader in this category of local services with over 50,000 active service professionals using their services, having facilitated more than 2.4 million customer request for home services, and generating an estimated $8.4 billion in consumer spending.
We invested in ServiceMagic in the fall of 1999. The co-founders – Michael Beaudoin and Rodney Rice – did an extraordinary job of creating a real company that survived the dotcom implosion, came out the other end with a strong business, did $20m of revenue in 2003, and was profitable and cash flow positive. IAC/InterActiveCorp has assembled a powerhouse e-commerce business through their acquisitions of companies such as Expedia, Hotels.com, Hotwire, Ticketmaster, Match.com, Citysearch, Evite, and LendingTree. ServiceMagic is another great addition to their Local & Media Services segment.
We’re all extremely excited about the transaction. Congrats Mike and Rodney!