ShareLone Wolf Technologies, a leader in residential real estate software, announced today that it has acquired zipLogix™, a leading provider of transaction management, electronic forms, and eSignature solutions for the real estate industry.
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) was the majority owner of zipLogix™, owning roughly two thirds of the company, and the National Association of REALTORS® (NAR) was a minority owner. The two organizations decided jointly to move forward on the sale of zipLogix™ and worked together on this opportunity.
NAR believes that the combination of these two firms, Lone Wolf and zipLogix™, will accelerate the development of next-generation transaction management products. The acquisition will also improve the technological capabilities and resources of REALTORS®, helping brokers and agents be more efficient and productive and deliver superior customer service.
NAR’s agreement with zipLogix™ to provide its software products free to you, the members of NAR, will remain in force until its expiration at the end of 2020 (extended to the end of 2021). We believe the financial return on our zipLogix™ investment, as well as the software it has provided to help you be effective and efficient in your real estate business, has demonstrated the value of strategic investments in technology. When the agreement expires, we will have the option to renegotiate it or seek other software options that serve your needs.
Due to confidentiality agreements that were a part of the purchasing contract, NAR cannot discuss the sale price. See additional information about the acquisition below.
Read the press release from Lone Wolf about its acquisition of Ziplogix.pdf
FAQ
1. What is Lone Wolf Technologies?
Lone Wolf Technologies, a Vista Equity Partners portfolio company, is the North American leader in residential real estate software, serving more than 700,000 REALTORS® across the U.S. and Canada. The company offers an ecosystem of technology products designed to simplify the entire transaction process, including software for back office and transaction management. Each element of this ecosystem enables brokerages and agents to operate more efficiently, reduce costs, and increase opportunities for profitability. Key products include TransactionDesk, Authentisign, and InstanetForms.
2. What is Vista Equity Partners?
Vista Equity Partners is the parent company to Lone Wolf Technologies. Vista Equity Partners is an investment firm with more than $46 billion in cumulative capital commitments. Vista exclusively invests in software, data, and technology-enabled organizations led by world-class management teams. As a value-added investor with a long-term perspective, Vista contributes professional expertise and multi-level support toward companies to help them realize their full potential.
3. What is zipLogix™?
For more than 20 years, zipLogix™ has been providing real estate professionals with a suite of innovative software solutions including their industry-leading real estate forms software, zipForm® Plus, and transaction management system, zipTMS™.
4. How does zipLogix™ currently work with the residential real estate industry?
zipLogix™ works closely with local and state real estate associations as well as the National Association of REALTORS® (NAR) to ensure forms are available for members throughout their suite of products. They provide a range of licensing and partnership opportunities, as well as complete marketing and sales support to those associations.
5. When does the acquisition take effect?
The transaction has closed, and the acquisition is already in effect.
6. Why did NAR sell zipLogix™ to Lone Wolf?
NAR and C.A.R. worked on this deal together. While C.A.R. was, indeed, the majority owner of zipLogix™, NAR fully participated in this decision. NAR agreed with C.A.R. that this transaction stands to accelerate the development of next-generation transaction management products and that it is in the best interests of all our members.
7. How will the acquisition affect the NAR member benefit?
There will be no change to the NAR member benefit. The benefit for members will continue as is through 2020 under the existing terms (extended to the end of 2021). In fact, as Lone Wolf and zipLogix™ begin to integrate platforms, we expect to be able to enhance the benefit through the more sophisticated solutions that the combined company will be offering its customers.
8. How will this affect member benefits for other REALTOR® organizations (state and local associations)?
Any existing service agreements will stay in place for at least their current term, and member benefits will continue as is.
9. How will either party's partner relationships be affected?
There will be no immediate changes to partnerships and/or integrations with Lone Wolf or zipLogix™.
10. How much money did NAR make from the sale? Did NAR maintain an ownership stake in the combined company?
We cannot disclose the transaction price or how much money NAR was paid due to confidentiality agreements that were part of the contract, but we can share that the proceeds will significantly strengthen NAR's financial reserves. NAR did not retain any ownership in the combined company.
11. What will the proceeds from the sale be used for?
The proceeds will be used to bolster our reserves.
12. What are reserves used for?
Reserves are one measure of an organization's health. They provide a financial cushion to deal with unforeseen circumstances or opportunities.
13. What is the benefit to members from NAR's investment in companies like zipLogix™?
One of our stated objectives as an association is to improve the technological capabilities and resources of our members in order to help them be more efficient and productive and deliver superior customer service. Our investment in zipLogix™ was clearly in line with this objective.
14. Did the sale provide financial benefit to NAR executives, leadership team, or staff?
No. There is absolutely no benefit to NAR executives, leadership team, or staff. All proceeds from this sale will be allocated to NAR reserves.