Angie’s List Appoints Chairman and Finance Chief as Company Considers IPO
Angie’s List Inc., a website that provides consumer reviews to 1.5 million members, may decide to opt for an initial public offering as early as this year, Chief Executive Officer Bill Oesterle said.
The company last year hired Code Advisors, which has provided advice on previous funding and would help Angie’s list choose bankers in the case of an IPO. Code is also advising on potential opportunities to sell the site, Oesterle said. Angie’s List has rebuffed expressions of interest from prospective buyers, which were public companies, he said.
Angie’s list named Keith Krach as chairman and Robert Millard as chief financial officer earlier today, appointments that may also presage plans for an IPO. A public share sale would help the Indianapolis-based startup raise money to pursue faster growth in the competitive consumer-reviews and daily deals markets, where rivals include Facebook Inc., Groupon Inc. and Google Inc. (GOOG)
“We are certainly reaching a size, and have opportunities in front of us that are causing us to consider very seriously a public offering,” Oesterle said in a telephone interview. “We could make that decision this year.” IPO funds could be used to boost advertising on TV and radio, he said.
Angie’s list doesn’t formally disclose financial details. Oesterle said revenue rose 40 percent in 2010, and should increase at a faster pace this year. The company expects to end the year with 1.8 million members, up from 1.2 million at the beginning of the year, he said.
Founded in 1995 by Angie Hicks and Oesterle, Angie’s List provides ratings and reviews for more than 500 types of businesses.
Krach, currently chief executive officer of 3Points LLC and chairman at DocuSign Corp., founded software maker Ariba Inc. (ARBA) and led that company through its IPO, Angie’s List said in an e- mailed statement today. Millard was previously CFO of FinishMaster Inc., a distributor of automotive paints and related accessories, Angie’s List said.
“The goal is to accelerate the tremendous business momentum that Angie’s List already has,” Krach said in an interview. “At some point in the future, I am sure there will be an IPO -- in the intermediate future.”
Pre-IPO companies often beef up management to add financial expertise and executives with experience taking businesses public.
“This is all according to the IPO playbook,” said Tom Taulli, an independent IPO analyst, said in an interview today. “In order to go public, you need a strong board and a CFO who knows how to deal with Wall Street.”
In March, Angie’s List raised $53.6 million in a private share offering from investors including mutual-fund company T. Rowe Price Group Inc., which tends to invest in companies that are already public. Last year, Angie’s List said it raised $25 million from investors including venture firms Battery Ventures, Saints Capital, and Wasatch Funds.
The site, which provides recommendations on everything from roofing to medicine, would likely seek to raise $100 million to $200 million, Taulli said, valuing the company at more than $1 billion.
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