SCOTTSDALE, AZ, Aug. 29 /CNW/ - Zaio Corporation (TSX-V: ZAO), a
technology and database company, has finalized the acquisition terms with
Kirchmeyer and Associates and Realinfo for the purchase price adjustment and
payment terms. The two privately held companies were acquired by Zaio in July
of 2007. The acquisition added 400 lender customer relations and 6,400
appraiser relationships, generating substantial revenue streams.
Under the terms of the deal, Zaio paid out US$3.4 million in cash and
issued common shares valued at US$2.6 million at closing in 2007. Zaio also
agreed to pay an additional amount approximately 13 months after closing based
on the profitability of the businesses during the 12 months following the
The additional amount payable based on the revenue and profitability
component of the transaction is $5.2Million. Kirchmeyer and Associates and
Realinfo have agreed to accept 40% of this payment in Zaio stock, of which
half is priced at 50 cents per share, and half will be based on the market
price at issuance. Zaio has agreed to pay the 60% cash portion over a
"Zaio continues to explore a wide range of strategic relationships to
accelerate the growth of the Company," states Douglas Vincent, CEO, Zaio. "The
acquisition of Kirchmeyer and Associates and Realinfo added value to our
shareholders and we will continue to prudently pursue other such
opportunities. With the addition of Jim Kirchmeyer to our board and executive
team, the Company also added a valued strategic human resource."
With the acquisition of the two companies, Zaio significantly reduced its
customer acquisition costs and obtained full service valuation operations
which currently serve lenders in all 50 states. In addition, the acquisitions
provided technical and infrastructure support and created bi-coastal operation
centers for Zaio.
Jim Kirchmeyer, with his extensive contacts in the lending industry,
currently serves as president. Jim will focus on expanding those relationships
and securing additional national accounts for Zaio.
Zaio is a technology and database company. The Zaio network of appraisers
currently serves approximately 500 lenders with a variety of nationwide
appraisal services. Zaio maintains a secure database of 140 million properties
and its affiliated appraisers are now site verifying property data, photos and
appraisals of virtually every property in America. Zaio's network of local
appraiser experts appraise entire cities, one building at a time using a
proprietary GeoScore(TM) rating system. Zaio trades under the symbol "ZAO"
with additional information available under the symbol "ZAOFF".
For investors who would like to be added to the Zaio investor
distribution list or receive a copy of the 2007 Annual Report, please contact
Lisa Lyscio at email@example.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release. This press
release contains forward-looking statements, which may include financial and
business prospects, as well as statements regarding the Company's future
plans, objectives or economic performance and financial outlooks. Such
statements are subject to risk factors associated with the real estate
industry, and the overall economy in both Canada and the United States. The
Company believes that the expectations reflected in this press release are
reasonable, but actual results may be affected by a variety of variables and
may be materially different from the results or events predicted in the
forward-looking statements. Readers are therefore cautioned not to place undue
reliance on these forward-looking statements.
In evaluating forward-looking statements readers should consider the risk
factors, which could cause actual results or events to differ materially from
those, indicated by such forward-looking statements. These forward-looking
statements are made as of the date hereof, and unless otherwise required by
applicable securities laws, the Company does not intend nor does it undertake
any obligation to update or revise any forward-looking statements to reflect
subsequent information, events, results or circumstances or otherwise.
For further information:
For further information: Donald E. Kelly, Chief Communications Officer,
(202) 302-3870; Lisa Lyscio, Manager, Investor Relations, (480) 449-2606