Colorado’s HomeAdvisor, an operator of home services marketplaces, has acquired Toronto’s HomeStars, a home services platform connecting homeowners with service providers throughout Canada.
Through the acquisition of HomeStars, HomeAdvisor says it strengthens its North American market leadership position in digital marketplaces dedicated to home services.
“The acquisition of HomeStars is the latest move in HomeAdvisor’s larger strategy to replicate the enormous success we’ve seen domestically to other markets, allowing us to build a dominant global business and brand,” said Chris Terrill, CEO of HomeAdvisor. “As digital alternatives increasingly replace word of mouth for home improvement projects, home services are poised to become the next major marketplace, and HomeAdvisor and its family of brands the de facto provider across the world.”
Founded in 2006 by Nancy Peterson, HomeStars connects some of Canada’s nine million homeowners with trusted reputable service providers. Canadian households spent $71 billion on home improvement in 2015, up from $45 billion in 2006.
“HomeAdvisor has a proven playbook for building a successful digital marketplace,” said Peterson. “We are thrilled to join forces with the company on the front lines of transforming the way homeowners discover and connect with a wide variety of vetted home services – from plumbing to painting to remodeling – able to unlock their home’s true potential.”
Last quarter, HomeAdvisor revenue increased 35% to US$123.7 million, driven by a 39% increase in domestic revenue and a 27% increase in international revenue.