Zaio finalizes acquisition terms with Kirchmeyer and Associates and Realinfo

Zaio Corporation, 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 closing date.

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 three-year term.

“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.