SHELTON, Conn., July 30, 2008 /PRNewswire-FirstCall via COMTEX/ --
Most Home Corp.
(MHME:most home corp com), a national provider of online customer service
solutions for the mortgage and real estate industries with offices in
Bellevue, Washington and Maple Ridge, British Columbia, announced today that
it has signed a definitive agreement to purchase the operating assets of
Shelton, Connecticut based TotalMove Inc.
Transaction Highlights
-- Consideration for the purchase is convertible debt;
-- Synergy values are significant;
-- High profile client relationships; and
-- Extensive network of major real estate brokerage relationships.
Founded in 2004, TotalMove provides REALTOR(R) referral and moving
services to consumers through customized private label acquisition and
retention programs for mortgage lenders, other financial service providers and
affinity groups. These programs offer consumers a convenient means of
coordinating the most important elements relating to a move of their
household. TotalMove works with E-LOAN, Wachovia Mortgage, Ditech, Nationwide
Insurance and other financial services companies, in delivering on the promise
of improved customer acquisition and retention combined with exceptional
customer service. Through these programs, consumers gain access to real
estate related information, savings and other benefits while buying and/or
selling a home.
"In this challenging environment, leading financial service companies
realize that consumers expect and appreciate a high level of personal service
and interaction with regards to their financial dealings. Most Home's licensed
team of contact center professionals specialize in coordinating consumer
relocations and can provide the level of support necessary to meet these
expectations," said Jim Secord, President, Most Home Real Estate Services Inc.
"We are delighted to have the opportunity to work with these organizations and
expand our current service offerings."
Claire Fennessey, VP, Marketing & Client Management at TotalMove stated,
"We are very excited about the acquisition and the prospect of being involved
in the Most Home organization. Their technology and experience in the mortgage
and real estate industries will really help grow the TotalMove business."
Most Home Corp. believes that the acquisition of TotalMove represents an
excellent strategic fit due to the similarity of services provided by both
firms. Ken Galpin, CEO of Most Home Corp., pointed out that the acquisition
of the TotalMove operations brings several positive additions for Most Home
Corp. shareholders. "We expect that annualized revenues for lead management
services alone within all Most Home Corp. subsidiaries will increase to over
$3,000,000 immediately as a result of this acquisition. The synergy values
realized should also assist us significantly in achieving our profitability
targets for the coming fiscal year," Galpin said. "Additionally, we believe
that the high quality of the TotalMove client relationships has the potential
for the development of significant revenue growth and new business
opportunities."
Acquisition Details
Most Home confirmed that upon closing, the full terms of the transaction
will be filed on form 8K with the US Securities and Exchange Commission and
will be available for viewing on its EDGAR system. Most Home expects to fund
the acquisition through the issuance of a promissory note in the amount of
$900,000 payable over three years with interest of 7% annually. This
promissory note will be a liability of Most Home Corp. and secured by the
assets being acquired. Additionally, Most Home Corp. has the option to repay
interest and principal through the issuance of common shares of Most Home
Corp. at the greater of the thirty day, volume weighted average trading price
or $0.50 per share at the due date of the promissory note so long as the share
price at that time is in excess of $0.50 per share. The maximum number of
shares of Most Home Corp. that could be issued under this transaction would be
2,063,966. This number of shares would represent less than 5% of the shares of
Most Home Corp. on a fully diluted basis. The Company expects that the
majority of transition costs will be realized over the 90 days following the
closing and that these costs will likely be about $250,000 including
professional fees. This number of shares would represent less than 5% of the
shares of Most Home Corp. on a fully diluted basis. Management of both parties
anticipates closing on August 1, 2008, to coincide with the beginning of the
first quarter of Most Home's upcoming fiscal year. The closing of the deal is
subject to normal course due diligence.
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40 views | Posted on 2008-07-31 @ 4.48:49 pm
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