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Associated Press

IAC's ServiceMagic buys stake in European company

The Associated Press10.28.2008
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ServiceMagic, a company owned by Barry Diller's IAC/InterActiveCorp that matches homeowners with prescreened home improvement contractors, said Wednesday that it is expanding internationally with the purchase of a majority stake in Luxembourg-based The Koening Co.

The acquisition is the first for IAC since it split from an Internet conglomerate into five publicly traded companies in August.

Financial details of the purchase and the exact size of the stake ServiceMagic bought were not disclosed.

The Koening Co. runs Web sites including 123Devis.com and 123GetAQuote.com, which connect homeowners in France and the U.K., respectively, with contractors.

ServiceMagic also said it is launching ServiceMagic Europe and ServiceMagic International. IAC wants to invest more in "lead generation," which helps businesses find customers and is "going to be an explosive market" in the next few years, said Jane Thompson, managing director of IAC International.

Copyright 2008 The Industry Standard. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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