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Zillow Announces Plans to Acquire Mortech

""Zillow, Inc."":http://www.zillow.com/, a major real estate information provider, announced it has entered into a definitive agreement to acquire ""Mortech, Inc."":http://mortech.com/, a mortgage technology company.

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According to a release, Zillow will give $12 million in cash and 150,000 shares of restricted stock in the deal. The transaction is subject to the fulfillment of closing conditions and is expected to close in Q4 2012. Mortech will continue to operate out of its office in Lincoln, Nebraska.

With Mortech's services, Zillow will deliver marketing and productivity solutions to mortgage professionals to help them manage their business and convert more borrower contacts to funded loans. These subscription-based software solutions include a product and pricing engine, a lead management platform, and various marketing tools to give lenders' brand and rate quotes more visibility throughout the mortgage shopping process.

The acquisition accelerates the development of Zillow Mortgage Marketplace, Zillow's lending marketplace where borrowers can connect with reputable lenders to get personalized loan options and real-time mortgage rates.

""We are following our proven strategy of building home-related marketplaces. In the case of Zillow Mortgage Marketplace, we first innovated on behalf of consumers by creating a transparent marketplace where the borrowers' needs come first, then we connected borrowers with lenders, and now we are investing in tools to help lenders be even more successful serving consumers,"" said Zillow CEO Spencer Rascoff. ""Enhancing the capabilities of mortgage lenders ultimately leads to a more vibrant and transparent consumer experience.""

Mortech will be the fifth acquisition by the Seattle-based Zillow in two years and the company's first in the mortgage sector. Zillow's other acquisitions expanded its presence in the larger real estate marketplace with shopping, listing, and rental platforms.

Mortech president Don Kracl said the acquisition will enable his company to ""broaden the reach of [its] product and deliver even better technology solutions to lenders.""

""At Mortech, we are focused on helping mortgage professionals do a better job at closing deals through a variety of best-in-class productivity tools,"" Kracl said. ""We're thrilled to join the Zillow team, which has demonstrated a deep commitment to empowering both consumers and professionals in the mortgage industry through their innovative mortgage marketplace.""

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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