Angie's List acquired online start-up BrightNest, calling the move a strategic next step in its drive to transform local service.
Angie’s List’s roots are in connecting homeowners to home service providers from plumbers to painters. The member-only site provides reviews on local service providers.
"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 CEO Bill Oesterle. "With 2 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."
BrightNest co-founder and CEO 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 Aug. 2, 2013.