QuinStreet acquires home improvement company Modernize
Foster City, CA-based performance marketing company QuinStreet has acquired Austin, TX home improvement company Modernize . The announcement was released last month.
Founded in 2005, Modernize is a team of 95 people on a mission to match homeowners with up to four home service providers based on their unique project requirements and location. Homeowners receive access to a resource center with aggregated and verified project reviews related to contractors as well as information on accreditations, Better Business Bureau profiles, and Google Business profiles. This valuable data inspires homeowner confidence as they plan projects and connect with contractors.
It operates in more than 15 high-value, high-consideration home segments, including new and replacement windows, solar installation, roofing, heating and air conditioning, siding, bathrooms and kitchens, new and replacement gutters, home security, and more. The business brings a network of more than 1,000 contractors and providers across all segments, offering broad geographical coverage and choice for homeowners.
Over the past 12 months, the combined business connected more than 3 million homeowners with home service professionals for their projects.
“Modernize has developed a highly-recognizable brand and deep relationships with contractors in select segments of the home improvement ecosystem. We are very excited to be a part of QuinStreet’s expanded home services business and to have the opportunity to serve more clients and homeowners in a greater number of market segments.” – Alan Godfrey, senior vice president of QuinStreet’s Modernize Home Services client vertical.
“Home improvement and related home services represents an enormous addressable market opportunity for QuinStreet’s future growth. Modernize Home Services will combine our two organizations’ capabilities to fuel expansion at scale for many years to come, while providing unparalleled consumer choice.” – Doug Valenti, QuinStreet’s chief executive officer.
The consideration paid for the acquisition totaled $67.5 million in cash and notes payable over five years, subject to certain closing adjustments. Modernize is expected to add $50-60 million to QuinStreet FY2021 revenue, and contribution margins immediately accretive to Company EBITDA.
