San Diego’s The Active Network, in another example of its growth-by-acquisition strategy, announced it is buying the online campground reservation provider ReserveAmerica from New York-based IAC.
IAC, (NASDAQ: [[ticker:IACI]]) the conglomerate led by Barry Diller which operates more than 35 Internet businesses , agreed to sell its 100 percent ownership stake in ReserveAmerica to Active for about 3.5 million shares of Active Network’s convertible preferred stock. IAC, which previously had some equity in Active, will own about 9 percent of the privately held San Diego Internet startup. The value of the deal was not disclosed, and it is expected to close at the end of the month.
As I explained in November, The Active Network has made a number of acquisitions in the outdoor recreation market in the past last two years, including campground reservation provider InfoSherix and three online providers of hunting and fishing licenses.
ReserveAmerica provides online reservation and campground management services for more than 300,000 campsites throughout North America. IAC says more 17 million consumers use its Web-based services annually. ReserveAmerica has about 460 employees, and a spokeswoman for The Active Network says there are currently no plans to reduce its workforce as a result of the transaction.
The Active Network was founded amid the dot-com boom of 1998 as an online registration site for marathons and endurance races. In the 11 years since then, Active has steadily acquired companies that provide online registration services for golf, softball leagues and other recreational activities. The Active Network now says it provides “integrated technology solutions, marketing services and online media properties that encourage and enable participation in activities and events.”
