Press release from GlobeNewswire (a Nasdaq OMX company)
Angie's List Announces Acquisition of BrightNest in Its Continued Drive to Transform Local Service
Monday, August 05, 2013
Angie's List Announces Acquisition of BrightNest in Its Continued Drive to Transform Local Service13:15 EDT Monday, August 05, 2013
INDIANAPOLIS, Aug. 5, 2013 (GLOBE NEWSWIRE) -- Angie's List (Nasdaq:ANGI) today announced the acquisition of online start-up SmartHabitat Inc. ("BrightNest"), calling the move a strategic next step in its drive to transform local service.
"The only way to transform the local services industry is to solve real problems in a bigger, better and new way," said Angie's List Chief Executive Officer Bill Oesterle. "With two million members and more than 18 years in this space, no one has better data on local service providers than Angie's List. BrightNest adds a user-friendly front end and personalized member experience to our marketplace platform which is built on rules, tools and transparency."
It's the latest move to illustrate the company's renewed commitment to user experience. In April, Angie's List promoted marketing director Shelly Towns to VP of Product, a role that formerly did not exist. Over the last 90 days the team has re-architected search and is currently working on a full product redesign.
Angie's List also announced the national rollout of its new communication and scheduling tools. In the second quarter, Angie's List processed more than 116,000 transactions on its marketplace platform. This represents a tiny fraction of the total transactions that flow through Angie's List. "We've been quietly transforming the way local service is transacted, and we are now in a position to scale it. We will put the platform everywhere our members want it to be, including web, mobile and call center," said Oesterle.
In the new marketplace, Angie's List can monitor and evaluate each transaction as it progresses through to completion. "If a transaction gets stuck at any point, we are going to step in and fix it," said Oesterle. "We have the critical mass and the relationships with local service providers that allow us to change service outcomes."
BrightNest Co-Founder and Chief Executive Officer Justin Anthony echoed Oesterle's statement. "We're excited to join a trusted brand and help facilitate the solution to make it even easier to hire local service providers. Our tools and interactive content allow us to tailor a custom experience for every member because no two homes and no two homeowners are exactly alike."
Under the terms of the acquisition agreement, Angie's List acquired substantially all of the assets of BrightNest for $2.65 million in cash. The cash value included $2.15 million at closing and $0.5 million payable at the one-year anniversary of closing, subject to certain performance criteria. Angie's List funded the acquisition with existing cash. In addition, Angie's List will grant options to purchase $3.65 million of Angie's List common stock to the members of the BrightNest team, all of whom have been retained by Angie's List. The transaction closed on August 2, 2013.
Certain information in this press release may contain forward-looking statements regarding future events or the future performance of Angie's List. These statements are only predictions and actual events or results may differ materially. Please refer to the documents Angie's List files, from time to time, with the Securities and Exchange Commission, including Angie's List's most recent Form 10-K and Form 10-Q. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in or implied by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date these statements were made. Angie's List undertakes no obligation to update any forward-looking statements contained in this press release.
About Angie's List
Angie's List helps consumers have happy transactions with local service professionals in more than 720 categories of service, ranging from home improvement to health care. More than 2 million subscribers across the U.S. share their consumer experiences and use Angie's List to gain unlimited access to local ratings, exclusive discounts, the Angie's List magazine, the Angie's List complaint resolution service and information about how to make the most of their home improvement projects.
CONTACT: Angie's List Tom Ward Investor Relations 317-808-4527 firstname.lastname@example.org Angie's List Cheryl Reed Public Relations 317-396-9134 email@example.com