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30-Nov-2012
Completion of Acquisition or Disposition of Assets, Regulation FD Disclosure, Financia
On November 30, 2012, Zillow, Inc., a Washington corporation ("Zillow"), consummated its acquisition of Mortech, Inc., a Nebraska corporation ("Mortech"), pursuant to the terms and subject to the conditions of the Stock Purchase Agreement by and among Zillow, Mortech, Don Kracl, Judy Kracl, Joyce Kracl, Jason Steele and Sara Steele (who are the shareholders of Mortech), and Don Kracl, in his capacity as shareholder representative, dated November 4, 2012. Mortech is a software and services company that provides mortgage-related solutions to lenders, bankers, credit unions and smaller community lenders. In consideration for the acquisition of all of the outstanding capital stock of Mortech from the shareholders, Zillow (i) paid to the shareholders approximately $12 million in cash, less certain transactions expenses and other costs and as adjusted at closing based on Mortech's net working capital, and (ii) issued to the shareholders a total of 150,000 restricted shares of Zillow's Class A common stock, which will vest over a three-year period beginning on November 30, 2012 (25% after the first year and the remaining portion in equal installments after the second and third years) subject to the achievement of certain performance metrics relating to Mortech's business and the continued employment with Zillow of Mortech's president, Don Kracl, and chief technology officer, Jason Steele. In connection with the closing, $1,800,000 of the cash consideration and 75,000 of the restricted shares otherwise payable to the shareholders has been deposited in a third-party escrow account to secure certain indemnification obligations of the shareholders.
A copy of the press release issued by Zillow on November 30, 2012 regarding the
closing of the Merger is filed as Exhibit 99.1 hereto, and is incorporated
herein by reference. The information in this Item 7.01 of Current Report on Form
8-K, as well as Exhibit 99.1, shall not be treated as "filed" for purposes of
Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference
in any filing under the Securities Act.
(d) Exhibits.
Exhibit
Number Description
99.1 Press release dated November 30, 2012 entitled "Zillow Completes
Acquisition of Mortech" issued by Zillow, Inc. on November 30, 2012.
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