Image: courtesy IAC
HomeAdvisor and Angie’s List will soon be one company called ANGI Homeservices, the two brands announced in early May. It’s a long time coming, and already the sites are promising good things for remodelers who advertise with them.
The merger idea gained momentum in 2015 when Angie’s List president, Eric Semler, revealed in a U.S. Securities and Exchange Commission 13D filing from TCS Capital Management, the holding company that currently owns Angie’s List, that he believed Angie’s List should merge with HomeAdvisor rather than remain a standalone company.
In his letter Semler wrote: “... we believe there is compelling strategic logic to an Angie’s List-HomeAdvisor combination. Such a combination would provide much needed scale to compete successfully in the $300 billion home services market.”
IAC, HomeAdvisor’s parent company, obviously agrees with Semler, as it will reportedly pay more than $500 million to acquire Angie’s List in 2017’s fourth quarter.
Some, like financial analyst Ken Copley, believe the merger will mean huge cuts to Angie’s List. “You don’t make an acquisition like that and keep everything intact,” Copley told USA Today in a statement following the announcement.
And while cuts conjure thoughts of diminished service offerings, which could hurt the home improvement businesses generating leads through the site, Brooke Gabbert, head of corporate communications for HomeAdvisor, assured Professional Remodeler that that won’t be the case, and in fact says that the merger will be good for remodelers. “While there will be cost savings due to combining synergies, this is a growth business and we will be investing in both brands," Gabbert says. "By combining the strength of the HomeAdvisor marketplace and the Angie’s List recognizable brand, we will be able to offer remodelers more advertising options and exposure to homeowners.”
HomeAdvisor CEO Chris Terrill further reassured remodeler clients saying that by leveraging the strengths and resources of both models, the new ANGI Homeservices will be able to increase both market penetration and online conversions.
We’ll have to wait to year’s end to get a better picture of what that all means.