HomeServe USA, an independent provider of home emergency repair service plans, announced on Monday that they would acquire Chattanooga-based company, ServLine. The acquisition will be made in an effort to expand HomeServe USA’s water and sewer service line protection services.
The merger between the two companies will be finalized by 2020. According to HomeServe USA’s spokesman, Miles Meehan, the company will maintain the current ServLine employees (12 in total) and hold on to its office located in Lee Parkway Drive.
Gary Harstine and Mark Slater founded the company back in 2014 and, since then, ServLine partnered with over 100 rural water utilities across the US, providing them with water leaks insurance protection.
For $1 to $2 per month, participating utilities can provide their customers with coverage against costly water bills due to leaky pipes or fixtures. Currently, the utilities under the ServLine water and sewer line protection program have 27,000 customer homes.
Slater said that they were excited to be a part of a well-established company. Additionally, he also considered HomeServe USA a leader when it came to providing home repair plans and catering to home emergency needs.
Moreover, homeowners will now be more prepared during times of emergencies, said Slater. The reason being is that their specialized programs, when combined with HomeServe USA’s customizable plans, will give everyone peace of mind and confidence knowing that they are protected against certain water-related damages.
According to John Kitzie, chief executive of HomeServe USA, ServLine’s exceptional business model can definitely improve what they currently offer to water utility and municipal partners (700 of them) as well as their customers. Kitzie added that the merger would also make HomeServe USA the best provider of home repair services in the country.
HomeServe USA offers home repair services to more than four million customers. They started their Chattanooga call center back in 2010. From 35 employees, the company has grown its operations center with over 500 employees. Last year, HomeServe USA opened a facility worth $5.5 million on Lee Highway.
Neither of the two companies disclosed the terms of sale.