HomeQuote.io Acquisition Marks DMS's Bold Expansion Into Home Services Marketplace

Digital Media Solutions, Inc. (NYSE: DMS), a dominant force in performance advertising, has made a strategic move to strengthen its market position through a significant acquisition. The company has agreed to purchase HomeQuote.io’s home services marketplace from Customer Direct Group, alongside the ClickDealer international ad network and associated media assets.

Market Opportunity Driving The Deal

The timing couldn’t be better. According to recent data from the Joint Center For Housing Studies, the home improvement sector is poised for substantial growth in 2023, with homeowner spending projected to hit $485 billion. This figure represents a massive opportunity for companies like DMS that can bridge the gap between service providers and consumers.

The economics make sense: homeowners struggle with the complex task of finding qualified contractors and comparing bids, while service providers face equally difficult challenges in reaching local customers cost-effectively. HomeQuote.io solves this by operating in high-demand segments including roofing, windows and doors, kitchen and bathroom remodeling, and gutter services. The marketplace will connect homeowners with thousands of contractors nationwide.

Strategic Expansion On Two Fronts

CEO Joe Marinucci outlined the dual-pronged strategy: “We’re executing on key growth initiatives by expanding our marketplace solutions into home services while simultaneously taking our brand direct business international.”

This acquisition delivers both benefits simultaneously. Domestically, DMS gains access to a thriving home services vertical that typically remains resilient during economic downturns—homeowners tend to invest in renovations rather than new purchases when markets cool. Internationally, the ClickDealer network opens doors to over a dozen countries, enabling DMS to serve advertisers across ecommerce, cybersecurity, retail, consumer finance, and gaming verticals.

Financial Metrics Signal Confidence

The deal carries a $35 million upfront price tag at closing, with performance-based contingent consideration of up to $10 million over the following two years. More impressively, DMS projects the acquisition will contribute $70–$80 million to 2023 revenues and expects the deal to be accretive to 2023 earnings from day one.

These numbers demonstrate management’s conviction that HomeQuote.io fills a critical gap in DMS’s portfolio and that international expansion through ClickDealer’s established infrastructure will deliver immediate returns. The transaction leverages DMS’s proprietary technology, first-party data assets, and media distribution capabilities to scale the newly acquired properties.

What’s Next

Completion of the transaction depends on satisfying customary closing conditions. More details about the acquisition will surface during DMS’s Q4 2022 and full-year 2022 earnings call scheduled for March 2023, along with subsequent SEC filings. The acquisition represents DMS’s continued investment in diversifying revenue streams across high-value verticals and geographic markets.