Canada’s Zaio Corp. says its U.S.-based subsidiary will purchase two affiliated businesses — the appraisal firm Kirchmeyer & Associates and real estate information provider Real Info Inc. — for $5.5 million in cash and stock.
Zaio has developed a database of photos, valuations and property information by employing a network of local appraisers to photograph and appraise entire cities from the street.
Kirchmeyer is the largest appraisal firm in New York, Zaio said, and provides appraisal services throughout the United States through its relationships with more than 7,000 appraisers.
Real Info provides automated property valuations to home equity lenders, credit unions, and real estate professionals, and provides searchable real estate data on over 85 million parcels across the United States through a subscription service.
Both Kirchmeyer and Real Info are based in Buffalo, N.Y., and headed by the same chief executive officer, Jim Kirchmeyer.
“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,” Kirchmeyer said in a press release.
Zaio, which announced in December that that the company had built customer relationships in about 170 U.S. cities, said the acquisition of Kirchmeyer and Real Info Inc. by its Scottsdale, Ariz., subsidiary Zaio Inc. will accelerate its growth.
Zaio is “continuing to explore a wide range of strategic relationships and acquisitions as part of its overall growth plan,” the company said.
The agreement stipulates that Zaio will pay an additional amount based on the profitability of the businesses during the 12 months following the closing date.
Based on year-end 2006 financial performance, Zaio estimates the combined annual revenues of the businesses are anticipated to be approximately $20 million (U.S.).
The deal is expected to close in the next 45 days, subject to receipt of all regulatory approvals, including a green light from Canada’s TSX Venture Exchange.