Wizzard Software Corporation (AMEX:WZE) signed a definitive share exchange agreement to acquire Digital Entertainment International Ltd. from Zhang and other investors for $11.9 million in stock on April 5, 2012. Wizzard Software Corporation will issue 3.9 million shares of its outstanding shares at the time of the closing. Additionally, Digital Entertainment International can receive or earn up to 78% of the convertible preferred shares of Wizzard upon meeting certain corporate governance and revenue milestones over the course of two years after closing. Digital Entertainment International reported revenues of $70.9 million and net income of $15.3 million in 2011. Wizzard Software Corporation will also offer two new seats on the Board of Directors. The current United States based management of Wizzard Software will remain, including its Chief Executive Officer and Chief Financial Officer. Zhang, founder and controlling shareholder of Digital Entertainment International will join as Chairman of the Board upon the closing of the transaction. The transaction is subject to approval from the shareholders of Wizzard Software and Digital Entertainment, regulatory approvals both in the U.S. and China, third party approvals, financial audit of target, completion of separate transaction and customary closing conditions. The transaction has been approved by the Board of both target and buyer. Art Batson of Arthur Douglas and Associates acted as an advisor for the transaction. Kramer Levin Naftalis & Frankel LLP acted as legal advisor to Wizzard Software.

Wizzard Software Corporation (AMEX:WZE) completed the acquisition of Digital Entertainment International Ltd. from Zhang and other investors for $30.8 million in stock on September 26, 2012. Wizzard Software issued total of 10.3 million “unregistered” and “restricted” shares of Wizzard's common stock, representing 49% of Wizzard's issued and outstanding common shares. As a result of the closing of the acquisition, Wizzard Software Corp. will change its name to FAB Universal Corp. and change its ticker symbol from NYSE MKT:WZE to NYSE MKT:FU, effective October 9th, 2012. King & Wood provided the legal due diligence and tax due diligence was performed by a ‘big four' accounting and consulting firm.