Leading Home Services Marketplace Connects Consumers with Local Professionals;
Will Join IAC Local and Media Services Group
NEW YORK, July 22 /PRNewswire-FirstCall/ -- IAC/InterActiveCorp
(Nasdaq: IACI) today announced an agreement to acquire ServiceMagic, Inc., the
nation's leading online home services marketplace, in a cash transaction.
Terms of the agreement were not disclosed. ServiceMagic will remain an
independent brand within the IAC Local and Media Services Group.
(Logo: http://www.newscom.com/cgi-bin/prnh/20031105/NYW076LOGO )
ServiceMagic, founded in 1999, connects homeowners with prescreened and
customer-rated residential contractors, real estate professionals and lenders.
Nearly 50,000 service professionals utilize ServiceMagic to find targeted
leads for home building, remodeling, architectural services, roofing, fences,
decks, painting, flooring, plumbing, landscaping and much more. Since its
inception, ServiceMagic has facilitated more than 2.4 million consumer
requests for home services, representing an estimated $8.4 billion in consumer
spending nationwide.
Anne Busquet, CEO of IAC Local and Media Services, said, "The migration of
local advertising from offline to online has tremendous growth potential and
is applicable to hundreds of industries, but has been realized by only a few.
ServiceMagic has created a highly scalable system that provides consumers
convenience, confidence and choice in purchasing home-related services while
driving down marketing costs for local service businesses via targeted
advertising. The IAC Local and Media Services Group was formed to provide
consumers with information, ratings, advice, connections and access wherever
they are and wherever they are going so they can make well-informed decisions.
We are pleased that ServiceMagic will join Citysearch, Evite, Entertainment
Publications Inc. and TripAdvisor as part of our mission to efficiently
connect merchants with the millions of consumers who want their services."
The company launched ServiceMagic Real Estate in mid-2002 in an effort to
address the large and fragmented residential real estate market. In October
2003 the company launched ServiceMagic Lending, offering consumers convenient
access to prescreened lenders for home mortgages, refinance loans and home
equity loans. Upon closing of the acquisition, management of ServiceMagic's
lending and real estate businesses will fall under the IAC Financial Services
and Real Estate Group.
ServiceMagic co-CEO and co-founder Michael Beaudoin said, "We launched
ServiceMagic with the belief that there was a better way to connect homeowners
with quality, reputable service professionals. IAC's extensive consumer reach
and merchant relationships give us the opportunity to significantly accelerate
our mission to revolutionize how people buy and sell local services and to
expand to the many other business arenas that can benefit from our efficient
customer acquisition platform."
The transaction is expected to close in the third quarter of 2004.
About IAC/InterActiveCorp
IAC/InterActiveCorp (Nasdaq: IACI) is the world's leading multi-brand
interactive commerce company. IAC consists of IAC Travel, which includes
Expedia, Inc., Hotels.com, Hotwire, Interval International, and TV Travel
Shop; HSN; Ticketmaster, which oversees ReserveAmerica; Match.com;
LendingTree; Precision Response Corporation; IAC Local and Media Services,
which includes Citysearch, Evite, Entertainment Publications, Inc. and
TripAdvisor, Inc.; and IAC Interactive Development which includes ZeroDegrees.
iac.com
About ServiceMagic, Inc.
ServiceMagic, Inc., headquartered in Golden, Colo., is the nation's
leading online marketplace connecting homeowners with prescreened and
customer-rated residential contractors, real estate professionals and lenders.
The company has raised more than $48 million in capital, increased revenue 100
percent on a year-over-year basis since 2000, and achieved $20 million in
revenue and profitable operations in 2003.
http://www.servicemagic.com
Safe Harbor Statement Under The Private Securities Litigation Reform Act
Of 1995
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include statements relating to IAC's anticipated
financial performance, business prospects, new developments and similar
matters, and/or statements preceded by, followed by or that include the words
"believes," "could," "expects," "anticipates," "estimates," "intends,"
"plans," "projects," "seeks," or similar expressions. These forward-looking
statements are based on management's current expectations and assumptions,
which are inherently subject to uncertainties, risks and changes in
circumstances that are difficult to predict. Actual results may differ
materially from those suggested by the forward-looking statements due to a
variety of factors, including changes in business, political, and economic
conditions due to the threat of future terrorist activity, actions and
initiatives by current and potential competitors, the effect of current and
future legislation or regulation, the ability to expand our reach into
international markets, and certain other additional factors described in IAC's
filings with the Securities and Exchange Commission. Other unknown or
unpredictable factors also could have material adverse effects on IAC's future
results, performance or achievements. In light of these risks, uncertainties,
assumptions and factors, the forward-looking events discussed in this press
release may not occur. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date stated, or if no
date is stated, as of the date of this press release. IAC is not under any
obligation and does not intend to make publicly available any update or other
revisions to any of the forward-looking statements contained in this press
release to reflect circumstances existing after the date of this press release
or to reflect the occurrence of future events even if experience or future
events make it clear that any expected results expressed or implied by those
forward-looking statements will not be realized.
Contacts:
IAC Corporate Communications
Deborah Roth or Andrea Riggs
(212) 314-7251
IAC Investor Relations
Roger Clark or Lauren Porat
(212) 314-7400
LendingTree Corporate Communications
Mindy Neubauer
(704) 944-8541
ServiceMagic Corporate Communications
Elaine Schoch
(303) 963-8028
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SOURCE IAC/InterActiveCorp
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Related links:
http://www.iac.com
http://www.servicemagic.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20031105/NYW076LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Deborah Roth, or Andrea Riggs, both of IAC
Corporate Communications, +1-212-314-7251, or Roger Clark, or
Lauren Porat, both of IAC Investor Relations, +1-212-314-7400; or
Mindy Neubauer of LendingTree Corporate Communications,
+1-704-944-8541; or Elaine Schoch of ServiceMagic Corporate
Communications, +1-303-963-8028
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