ZAIO GOES NATIONAL

Major acquisitions boost capabilities, client base and clout

Thanks to an aggressive acquisition program, Zaio is now operating as a full-service appraisal business in all 50 states. “Instead of taking years to build our critical mass,” Zaio Chief Executive Officer Thomas Inserra says, “we instantly have hundreds of lender customers we can serve from a well-established business base, along with a powerful national network of appraisers.”

Zaio purchased Kirchmeyer & Associates and Real Info Inc. in July 2007, and Realink and its subsidiary, United Systems Software, in April of this year. In addition to providing Zaio with national scope, the acquisitions have created a company with a stronger infrastructure and solid credibility with lenders. Here’s a brief overview of the acquisitions:

  • Realink – Headquartered in Tempe, Arizona, Realink is a national provider of real estate appraisal services. It is known for offering technological solutions that enhance customer services and improve speed and cost-efficiency.

  • United Systems Software – Established in 1982, United Systems Software has provided appraisal-forms software to thousands of appraisers nationwide for more than 24 years, and was the first real estate appraisal software company to sign an agreement with Fannie Mae for online appraisals.

  • Kirchmeyer & Associates – Established in 1994, Kirchmeyer & Associates is the largest appraisal firm in New York state and completes appraisals in all 50 states. Its fully computerized operations offer a full range of appraisal services.

  • Real Info Inc. – Since December 1995, Real Info has been providing comprehensive real estate information and valuations across the country. Based in Buffalo, New York, Real Info has developed an Automated Valuation Model (AVM) and offers a range of reports through its data subscription services.

According to former Realink CEO and now Zaio COO Steve Oliver, the acquisition of Realink/United Systems gave Zaio a unique combination of appraiser-centric software and a lender-focused business approach. “Zaio recognized that they needed to either build an order management platform or buy one,” says Oliver. “Realink offers a custom system for integrations – or clients can go on our website and order from a comprehensive menu. We have a relationship with a sizeable client base and have passed the necessary clearances and met all the necessary criteria for doing business with them. Agreements are in place with several large lenders.”

The Realink acquisition also brought a pool of 4,000 potential zone acquirers to the table. Many have already acquired zones, and some software customers have also recognized the value of the Zaio business model and have bought zones as well.

The Kirchmeyer and Real Info acquisitions added 400 lender clients and 6,500 appraiser relationships to Zaio’s portfolio. “Our clients have always viewed us as being on the cutting edge of the appraisal industry,” says Jim Kirchmeyer, CEO of Real Info and Kirchmeyer & Associates, “and Zaio takes us a step further. We believe that together with Zaio, we will continue to be a driver within the appraisal industry and take it to the next level.”

Zaio is now positioned to seamlessly integrate and deliver a full range of new automated solutions to existing and new customers. “We can provide a full range of conventionally produced valuation services,” Inserra says. “As we continue to populate our database, we will start to increase the volume of work processed through Zaio. We intend to migrate customers to the more efficient Zaio GeoScore™ solution as additional markets are brought on stream.”

“When the market sees more Zaio zones going live,” says Oliver, “my expectation is that it’s going to create more interest from some of the other vertical markets. We expect more people will approach us for more of our services. Several markets are in the final stages of development. San Diego is underway and we anticipate going live within the next several weeks. Orlando is not far behind.”

“Initially, we intend to operate the acquisitions as stand-alone entities while we identify redundancies and look for efficiencies,” says Doug Vincent, Zaio’s Managing Director, Corporate Development. “In particular we intend to leverage the considerable experience and expertise we’ve acquired, while capitalizing on existing working relationships.”

Inserra adds that acquisitions will continue to be an important part of the Company’s growth strategy. “We’re always on the lookout for complementary acquisitions that will give us access to our target markets and accelerate development of our core business.”

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