SCOTTSDALE, AZ., June 19 /CNW/ - Zaio Corporation (TSX-V: ZAO), the North
American leader in developing and maintaining a site-verified database of
photos, valuations and property information, today announced that its
Scottsdale, Arizona, subsidiary Zaio Inc. has entered into a definitive
agreement to acquire the assets of two privately held affiliated businesses,
Kirchmeyer & Associates and Real Info Inc., both based in Buffalo, New York.
Under the terms of the deal, Zaio will pay US$3.0 million in cash and common
shares valued at US$2.5 million at closing. Zaio has also agreed to pay an
additional amount approximately 13 months after closing that will be based on
the profitability of the businesses during the 12 months following the closing
Kirchmeyer & Associates is the largest appraisal firm in New York State
offering appraisal services throughout the United States and Real Info has a
proven track record as one of the most comprehensive business-to-business real
estate information and automated valuation providers in the industry today.
Thomas J. Inserra, CEO of Zaio in announcing the acquisitions said, "Jim
Kirchmeyer is regarded as one of the most innovative and energetic leaders
within the appraisal industry. He has spent a lifetime building two national
businesses that are held in high regard for their innovative solutions,
quality and commitment to customer service. These businesses provide Zaio with
highly experienced people, an important presence in the Northeastern United
States and other resources to better serve our lender, appraiser and other
Zaio expects to leverage both businesses to further accelerate its growth
and the Company is continuing to explore a wide range of strategic
relationships and acquisitions as part of its overall growth plan. Based on
year-end 2006 financial performance, consolidated with current Zaio
operations, the combined annual revenues of the businesses are anticipated to
be approximately US$20,000,000. Zaio expects to remain cash flow positive and
debt free, and to maintain a sizable cash reserve after this transaction.
"Our clients have always viewed Kirchmeyer and Real Info businesses to be
on the cutting edge of the appraisal industry, and Zaio takes us a step
further," said Jim Kirchmeyer, CEO of Real Info Inc. and Kirchmeyer &
Associates. "These are exciting times in the appraisal industry and together
with Zaio, we will continue to be a driver within the appraisal industry and
take it to the next level," he added.
The transaction is expected to close, subject to receipt of all
regulatory approvals including the TSX Venture Exchange, within the next 45
Zaio is the North American leader in developing and maintaining a
site-verified database of photos, valuations and property information of
virtually every property for entire cities, using a proprietary "GeoScore"
property rating system. Zaio and its network of premiere, local appraiser
experts photograph and appraise entire cities, one building at a time from the
Zaio is a public corporation that trades under the symbol "ZAO" on the
TSX-V Exchange in Canada. Additional information is available for US investors
under the symbol "ZAOFF".
About Kirchmeyer & Associates
Kirchmeyer is a national appraisal company providing appraisal services
throughout the United States. Kirchmeyer focuses on service and technology
solutions that reduce cycle time and costs associated with evaluating property
risks and closing transactions for all real estate appraisal needs including
complete and limited appraisals for residential and multi-use properties,
relocation appraisals, construction inspections, FHA appraisals, VA
appraisals, field reviews, desktop reviews, estate valuation, Home Equity
valuations, tax grievance/assessment analysis, matrimonial appraisals and
litigation services. Kirchmeyer has relationships with more than
7,000 appraisers across the U.S. and has integrated relationships with
numerous local, regional, and national clients. On-line status program
provides 24-hour Internet access to status reports, so clients can determine
the status of an appraisal at any time in the process. Kirchmeyer also
provides flood services, including Life-of-Loan Flood certifications, basic
flood certifications, HMDA data reporting and portfolio review.
About Real Info
Real Info has a proven track record as the most comprehensive
business-to-business real estate information and valuation provider in its
present market and expects to achieve the same prominence in each of its
markets countrywide. Real Info provides automated property valuations to home
equity lenders, credit unions, and real estate professionals. The valuation
services enable clients to streamline the appraisal process with
cost-effective, accurate, and time-saving solutions. Real Info uses its
proprietary internet delivery technology to provide searchable real estate
data on over 85 million parcels across the United States through its real
Access(TM) subscription service.
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, including without limitation, a forecast on expected annual
revenues. Such statements are subject to risk factors associated with the real
estate industry, and the overall economy in both Canada and the United States.
There can be no assurance that the transaction described above will close or
that the synergies and current revenues of the businesses acquired will
continue and grow at the levels anticipated by management. 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: visit www.zaio.com or please contact: Thomas J.
Inserra, President and CEO, (480) 575-5111; Rodney D. Mitton, CFO, (403)
802-2033; James A. Kirchmeyer, CEO, Kirchmeyer & Associates, (800) 771-5246
x112; For investors who would like to be added to Zaio's investor distribution
list, please contact Collum Hunter at firstname.lastname@example.org