FOSTER CITY, Calif.,
July 14, 2020 /PRNewswire/
-- QuinStreet, Inc. (Nasdaq: QNST), a leader in
performance marketplace products and technologies, today announces
the acquisition of Modernize, a leader in home improvement
performance marketing services. "Modernize Home Services"
will serve as QuinStreet's flagship brand in home services going
forward, advancing its mission to set the standard for transparency
and trust in the home improvement and home services selection
process, enabling millions of homeowners to make good and confident
decisions.
The market for home improvement and other home services is
enormous, with consumer spending on professional home improvement
alone estimated at more than $200
billion in 2019. Costs for typical home improvement projects
such as installing new windows, remodeling a bathroom, replacing
gutters, installing a solar power system, and other home projects
typically range from thousands to tens of thousands of dollars. The
process of identifying and selecting a qualified product and
service provider can be complicated and time-consuming for
homeowners. Conversely, reaching and communicating with homeowners
can be difficult and expensive for providers.
Modernize Home Services' vision is to solve problems on
both sides of the market and simplify the process; the business
brings unprecedented depth, capabilities and reach to do so.
Modernize Home Services will initially operate 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.
Modernize Home Services also has extensive marketing and reach in
digital media through QuinStreet's unprecedented performance
marketplace capabilities and presence, providing opportunities to
engage with and service homeowners in all its major channels. Over
the past 12 months, the combined business connected more than 3
million homeowners with home service professionals for their
projects.
Modernize Home Services enables homeowners to be matched 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.
Likewise, QuinStreet and Modernize service provider clients will
now have the ability to reach new homeowners through one convenient
platform and to receive important consulting and analytical
insights on their businesses. After matching, Modernize Home
Services facilitates communication between the homeowner and home
service provider, soliciting feedback from both parties throughout
the project lifecycle to ensure an efficient and transparent
process.
"Modernize has developed a highly-recognizable brand and deep
relationships with contractors in select segments of the home
improvement ecosystem," notes Alan
Godfrey, senior vice president of QuinStreet's Modernize
Home Services client vertical. "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."
"Home improvement and related home services represents an
enormous addressable market opportunity for QuinStreet's future
growth," explains Doug Valenti,
QuinStreet's chief executive officer. "Modernize Home Services will
combine our two organizations' capabilities to fuel expansion at
scale for many years to come, while providing unparalleled consumer
choice."
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. More details on the transaction will
be shared in QuinStreet's FY2020 Q4 earnings call in August, 2020,
and in subsequent reports filed with the Securities and Exchange
Commission.
To learn more about QuinStreet products and services, complete a
Contact Us form
here: https://www.quinstreet.com/our-products/
About QuinStreet, Inc.
QuinStreet, Inc. (Nasdaq: QNST) is a pioneer in delivering
online marketplace solutions to match searchers with brands in
digital media. QuinStreet is committed to providing consumers and
businesses with the information and tools they need to research,
find and select the products and brands that meet their needs.
About Modernize
Located in Austin, Texas,
Modernize was previously one of the largest
privately-owned lead generation companies in home improvement in
the United States. For 15 years,
Modernize has been a leader in the home improvement industry,
connecting homeowners with contractors within energy-efficient
trades such as solar, windows, air conditioning, roofing, and
siding.
Legal Notice Regarding Forward-Looking Statements
This press release and its attachments contain forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934 that involve risks and uncertainties. Words
such as "estimate", "will", "believe", "expect", "intend",
"outlook", "potential", "promises" and similar expressions are
intended to identify forward-looking statements. These
forward-looking statements include the statements in quotations
from management in this press release, as well as any statements
regarding the Company's anticipated financial results, growth, and
strategic and operational plans. The Company's actual results may
differ materially from those anticipated in these forward-looking
statements. Factors that may contribute to such differences
include, but are not limited to: the impact from risks and
uncertainties relating to a novel strain of the coronavirus
(COVID-19); the impact from risks and uncertainties relating to our
previously announced strategic alternatives; the impact of changes
in industry standards and government regulation including, but not
limited to investigation or enforcement activities of the
Department of Education, the Federal Trade Commission and other
regulatory agencies; the Company's ability to maintain and increase
client marketing spend; the Company's ability to maintain and
increase the number of visitors to its websites and to convert
those visitors and those to its third-party publishers' websites
into client prospects in a cost-effective manner; the impact of the
current economic climate on the Company's business; the Company's
ability to access and monetize Internet users on mobile devices;
the Company's ability to attract and retain qualified executives
and employees; the Company's ability to compete effectively against
others in the online marketing and media industry both for client
budget and access to third-party media; the Company's ability to
identify and manage acquisitions; and the impact and costs of any
alleged failure by the Company to comply with government
regulations and industry standards. More information about
potential factors that could affect the Company's business and
financial results are contained in the Company's annual report on
Form 10-K and quarterly reports on Form 10-Q as filed with the
Securities and Exchange Commission ("SEC"), including the Company's
quarterly report on Form 10-Q for the quarter ended March 31, 2020, filed with the SEC. The Company
does not intend and undertakes no duty to release publicly any
updates or revisions to any forward-looking statements contained
herein.
Media Contact
SSPR for QuinStreet
Morgan Wolfe
(719) 310-4930
QuinStreet@sspr.com
Investor Contact
Erica
Abrams
(415) 297-5864
eabrams@quinstreet.com
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SOURCE QuinStreet, Inc.