CALGARY, March 12 /CNW/ - Zaio Corporation (TSX-V: ZAO) announced today
that it has entered into a definitive agreement to acquire the assets of
Realink Corporation, a privately held company with offices in Tempe, Arizona.
Realink operates two divisions that provide services to the appraisal and
mortgage banking industries. The assets are valued at US$3.4 million. Under
the terms of the deal, Zaio will issue 1,978,000 common shares and 2.5 million
warrants allowing the holder to purchase the same number of common shares at a
price of $3.08 per share. The warrants expire on December 31, 2007. The number
of shares was determined based on 85% of the average closing price of Zaio
shares since March 2, 2007 and an exchange rate of $1.17. The transaction is
expected to close, subject to receipt of all regulatory approvals including
the TSX Venture Exchange, within the next 45 days.
"Zaio's primary goal is to build out its network of appraisers as quickly
as possible in order to satisfy the needs of lenders and 11 other targeted
market segments with our 'instant' valuation solution," stated Thomas J.
Inserra, chief executive officer of Zaio Corporation. "Realink provides us
with highly skilled and experienced professionals with great technological
expertise in our industry and proven technical support, customer service
skills and other needed capabilities. The acquisition also provides us with a
viable method for accelerating the introduction of our services to lenders as
we expand our geographic coverage throughout the US."
The United Systems Software division of Realink is the nation's oldest
appraisal technology company and has relationships with 4,000 appraisers
across the country. It was the first appraisal software company to sign an
agreement with Fannie Mae for online appraisals. Access to Realink's 4,000
appraiser relationships will help accelerate Zaio's national expansion and
assist the company with overcoming the challenge of matching its internal
infrastructure growth with the rapid customer and sales expansion of the
business. A benefit to Zaio's customers and existing network of Zone
appraisers is expected as the integration of Realink's technology occurs
"Based on year-end 2006 financial performance of each business, we expect
the combined operations to generate revenues of about $12,000,000 in 2007,"
said Rodney Mitton, chief financial officer of Zaio. "After closing, three
large private equity firms, which had been Realink shareholders, will become
shareholders of Zaio. These firms on an aggregate basis will hold about 6% of
Zaio's outstanding shares, but are the first known institutional-grade
investors in Zaio's stock."
Zaio is the only known company in the world that develops and maintains a
site-verified database of photos, valuations and property information of
virtually every property in 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
Realink Corporation is a privately-held electronic commerce company with
two software technology divisions providing appraisal software to licensed
appraisers and appraisal services to the mortgage banking industry. Realink is
a national provider of real estate appraisal and settlement services focusing
on service and technology solutions that reduce cycle time and costs
associated with evaluating property risks and closing transactions.
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".
For investors who would like to be added to Zaio's investor distribution
list, please contact Collum Hunter at firstname.lastname@example.org.
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.
There can be no assurance that the transaction described above will close. 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)