At Zaio, Some Financial Gymnastics
In an effort to gain some financial flexibility during a tough real estate market, appraisal services provider Zaio Corporation said Wednesday that James Kirchmeyer, who serves as the company's president and is also a member of the board, had acquired certain assets of the company in a transaction valued at $3.2 million. Under the terms of the agreement, Kirchmeyer will acquire assets which were originally included in Zaio's purchase of Kirchmeyer & Associates and Real Info in July 2007, essentially giving Kirchmeyer his prior stake in his own firm back. In connection with the sale, Zaio simultaneously entered into a perpetual technology services agreement with Kirchmeyer directly that provided exclusive rights to control and utilize these assets and resulting revenue. Zaio also retains the right to re-acquire these assets, at its option, for the sum of $3.2 million plus accrued interest, the company said. "This transaction allows Zaio the ability to retire $3.2 million of debt and monthly cash flow obligations, while concurrently preserving a core part of our appraisal operations, complete property valuation solutions, and critical client relationships," said Douglas Vincent, CEO. "We are pleased that this transaction will reduce our capital requirements, while at the same time providing the company flexibility in managing its assets." Financial gymnastics aside, Zaio was selected as the recipient of the annual "Fix-It Award" by Mortgage Technology Magazine; the niche technology magazine, which focuses primarily on origination-based technology, gave the award to the company on account of its patent-pending GeoScore process to help eradicate fraudulent appraisals, Zaio officials said. "This award is a real honor for the entire Zaio team and our network of appraisers and Zone owners," said Kirchmeyer. "All of us at Zaio are committed to transforming the appraisal process to add greater efficiency and more reliability to the science of valuation. Industry recognition of our accomplishments is very gratifying." For more information, http://www.zaio.com.