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Online Home Services Company Finalizes Acquisition of ClubLocal Business from ReachLocal, Inc.
LOS ANGELES–(BUSINESS WIRE)–February 21, 2014–
ClubLocal, the easiest way to book and buy household services, today announced that it completed a $10.7M round of funding led by Groupon, Inc., a group of individual investors, and two of the original founders of ReachLocal, Inc. The financing consists of an initial $7.5M investment with an option for Groupon to contribute an additional $3.2M within the next twelve months. The financing transaction is part of the transfer of the ClubLocal business by ReachLocal to a new entity in exchange for a minority interest following the conclusion of the go-shop period ReachLocal announced in December of last year.
Since its launch in August of 2012, ClubLocal has completed over 11,000 home repair jobs across more than a dozen different home services categories, expanded its offerings from its Dallas base into the San Francisco Bay area and announced plans to serve other U.S Cities in the near future. The investment will be used to expand the company’s geographic footprint and its network of independent professional service providers and to accelerate the introduction of innovative features to its online and mobile booking and transaction platform.
“The shift to the online booking and buying of home services is a huge market opportunity that we are proud to be pioneering,” said CEO of ClubLocal, Zorik Gordon. “We are extremely excited to have the experience of our investor group as we move to the next phase of our company, in particular the strong consumer presence that Groupon brings to ClubLocal. We believe that this round of financing firmly positions us as a well-funded, independent company that can more aggressively pursue this huge market opportunity.”
“From the start, Groupon has focused on connecting customers and local merchants in a vibrant online, and increasingly mobile, marketplace. We believe home services is one of the next areas primed for an offline-to-online transformation, and ClubLocal has the opportunity to be a part of this fundamental business shift,” said Robbie Schwietzer, senior vice president at Groupon.
ClubLocal, LLC will now be wholly owned by Serviz, Inc., a Delaware corporation. Zorik Gordon, the former founder and CEO of ReachLocal, Inc., and Michael Kline, the former founder and President Local Commerce of ReachLocal, Inc. will serve as the company’s CEO and President, respectively. The company will be headquartered in Encino, CA.
About ClubLocal
ClubLocal, a Serviz, Inc. company, is a revolutionary new service and the only end-to-end solution that enables customers to instantly book and buy home services online and through its iPhone and Android apps. ClubLocal is currently available in the San Francisco Bay Area and the Dallas-Ft. Worth metro area. Services available include Plumbing, Handyman, Heating & Air Conditioning, Electrical, Appliance Repair, Carpet Cleaning, Damage Restoration, Duct/Dryer Vent Cleaning, Garage Door Repair, Home Inspection, House Cleaning, Mobile Auto Detailing, Pest Control, Pressure Washing, Window Cleaning, Painting and more. ClubLocal stands behind every job with its ClubLocal Satisfaction Guarantee and sends its “A” rated Service Pros to customers’ homes within a two-hour time window vs. the industry standard 4-6 hours.
Customers can register and book an appointment at ClubLocal.com, download the free ClubLocal iPhone and Android apps or call at 1-800-699-3171. For additional information, visit ClubLocal.com.
Customers and media can also follow ClubLocal at Facebook.com/ClubLocal and Twitter.com/ClubLocal.
ClubLocal, LLC
Kristen Yarbrough
818-574-5453
kristen@clublocal.com
