CALGARY, June 2, 2015 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio"), is pleased to announce that it has closed the purchase of the business and assets of Valuation Vision, LLC ("Valuation Vision").
"We are pleased to announce that as of today, Zaio will begin to recognize all revenues generated by Valuation Vision," said David King, CEO and President of Zaio Corporation. "Successfully closing Valuation Vision, is a key milestone in fulfilling our corporate valuation technology and product strategy. Together with Axis Appraisal Management, the pro forma company will stand as a fully integrated valuation data and technology company serving the booming U.S. mortgage and real estate industry."
"We're pleased to finalize the acquisition by Zaio," stated Shane Copeland, CEO of Valuation Vision. "While we've been strategically aligned with Zaio and Axis for over a year, the conclusion of the acquisition will provide us the capital and technology resources to fund our rapid growth."
As previously announced, Zaio entered into a definitive binding purchase agreement with Valuation Vision in December 2014 for the acquisition by Zaio of substantially all of the assets and certain liabilities of Valuation Vision. The purchase price was satisfied by Zaio issuing 5,333,333 common shares and payment of US $614,000 in cash to satisfy certain assumed liabilities owed to the majority shareholders of Valuation Vision. In addition, the Company issued an additional 8,000,000 common shares to minority owners and management of Valuation Vision as the result of the satisfaction of certain performance targets. The transaction is valued at approximately US$4.286 million. The business and assets are now being transitioned to in a subsidiary of Zaio, Valuation Vision, Inc. along with the former management team.
As a result of the acquisition, Zaio through its subsidiary, Valuation Vision, Inc. now owns and operates a proprietary order management technology and analytics platform supported by a highly experienced team of real estate and data professionals. BPOMerge™ is an innovative valuation solution developed by Valuation Vision, where multiple agents provide independent research and price opinions. The patent-pending MergeValue™ algorithm scores agent performance to determine the most probable outcome as a reconciled value. With 18 expert-selected comparables and over 40 site-inspection data elements, BPOMerge™ provides a significant amount of data and insight on the subject property. Valuation Vision has also built a well-established institutional customer base of asset managers, private equity firms, and national mortgage services firms, which customer base has now transferred to Zaio. Closing this transaction delivers scale immediately and accelerates Zaio's growth and revenue potential.
About Zaio Corporation
Zaio provides customers in the property valuation, underwriting and lending industries with real-time access to certified appraisal reports from the company's patented database of proactively maintained residential property evaluations prepared by licensed appraisers across the United States. Visit the company online at zaio.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy and of the securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended the U.S. Securities Act, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act
Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated events and strategies. When used in this context, words such as will, anticipate, believe, plan, mandated, intend, target, and expect or similar words suggest future outcomes.
Forward-looking information in this press release, includes, among other things, information relating to potential revenues and growth.
These statements are based on certain assumptions and analyses made by the Company in light of its experience, current conditions and expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements include, but are not limited to: (i) the accuracy of the revenues reported by Valuation Vision; (ii) the ability of the Company to realize such revenues; and(iii) the ability of Zaio to effectively integrate the combined entities.
Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management's current expectations, and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Zaio does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Zaio's expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
SOURCE Zaio Corporation
For further information: visit www.zaio.com or contact: David King, President & CEO, Zaio Corporation, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, [email protected]