JZZ Technologies, a small publicly traded technology company, is in the process of acquiring Colorado-based Oxygen Mortgage.
The deal closes in 60 days and the price tag for the acquisition is a "low seven-figure number," according to Robert Egeland, CEO of Oxygen Mortgage.
The New York-based tech company is looking to expand into real estate and Egeland will lead its real estate division. Originally, the two companies planned to partner up on a joint venture, however, after some discussion an acquisition made more sense.
"JZZ is being restructured at the moment," said Egeland. "Though they previously focused on data and data management, they've decided to add in a real estate development division. My little company's going to get rolled up into this company, and then we're going to grow something really big."
Egeland's "small and mighty team" of loan officers will have access to JZZ's extensive database of clients, which will help get purchase business through the door.
There are also plans to partner up with home developers and offer mortgage products to those looking to buy newly constructed homes. Currently Oxygen Mortgage is licensed in seven states, but there are plans to expand into 18 more states this year.
The acquisition of Oxygen is just one of many mergers and acquisitions expected this year. STRATMOR Group predicts that
From the start of this year, a handful of mortgage companies including American Pacific Mortgage, Guild Mortgage, Union Home Mortgage,
For many of these companies, acquiring others during a downward market is a business strategy to
