November 14, 2010

DVD Kiosks - Global Axcess to Acquire Tejas locations

PR/Investor spinup - Tejas with 250 units at 220 AAFES locations agrees to become part of Global Axcess which now has 600 locations. The pr "may" contain forward-looking statements. - Global Axcess Corp to Acquire Tejas Video With 260 DVD Kiosks

Global Axcess Corp (OTC Bulletin Board: GAXC; the "Company"), an independent provider of self-service kiosk solutions, today announced that it has signed a Definitive Agreement to acquire Tejas Video Partners ("Tejas"), a privately held firm operating in the unattended DVD rental kiosk business. Tejas currently has over 260 kiosk locations in operation across the United States, primarily at over 70 military facilities.

Global Axcess expects to close the acquisition by the end of November, which will result in an increase the Company's number of deployed DVD rental kiosks to over 600. Upon close of the acquisition, the Company's total DVD kiosk portfolio will be located at a combination of highly attractive grocery store chains and highly sought after locations on U.S. military bases. The Company believes the acquisition will be immediately accretive, adding over $1.0 million of EBITDA in 2011 and increasing revenues by over $4.0 million.

Tejas Video's primary contract is with The Army and Air Force Exchange Service ("AAFES") for DVD rental kiosks, which currently includes 250 kiosks deployed at 220 locations on over 70 bases. Tejas also has a contract with a small Texas-based convenience store chain for 10 additional DVD rental kiosks. AAFES currently operates facilities at over 100 domestic and 400 military bases abroad. AAFES operates facilities worldwide in more than 30 countries, five U.S. territories and 50 states. It operates approximately 181 main stores and more than 1,000 fast-food restaurants.

Mr. George McQuain, Chief Executive Officer of Global Axcess, indicated, "We are very excited about this combination – the addition of Tejas to our core business is substantial in not only the financial impact on day one, but also in helping us leverage what they have learned from being in the kiosk business for the past 6 years. Tejas is a stable business with an experienced management team that is generating positive EBITDA annually and has generated revenues of approximately $4.1 million in 2009. They have also demonstrated an ability to keep customers satisfied and committed to long term relationships. A clear indication of this was shown in Tejas recently defeating a major competitor for the renewal of the AAFES contract; AAFES elected to renew its initial five year contract with Tejas for another five years."

Von Shows, President of Tejas Video, stated, "This acquisition demonstrates a commitment by both companies to provide best-in-class service to existing and potential customers. Tejas has long-standing knowledge and expertise in the unattended DVD rental market; while Global Axcess brings financial strength, operational excellence and an established corporate infrastructure to assist in strategically building on what we have already begun to build with the U.S. military community. This combination is a win-win and I'm looking forward to assisting in future growth."

Marc Caramuta, Chief Operating Officer of Global Axcess noted, "Tejas Video has developed a highly efficient and effective operational platform in the DVD kiosk space, which can assist our already successful momentum into this space. We look forward to leveraging their team of talent and knowledge to affect positive results as we scale those efficiencies into a larger share of the DVD kiosk market – in the government sector as well as our growing footprint in the private sector."

Mr. McQuain concluded, "This acquisition will enable us to gain access to greatly expanded market opportunities, to rapidly deliver new DVD kiosk deployments, and to achieve synergies in our operations and knowledge base. We look forward to the success that this partnership will bring. We also look forward to the added value we are delivering to our shareholders."

Terms of the agreement, while currently undisclosed, include a cash payment at deal closing, an additional cash payment within 120 days after deal close and restricted shares of common stock. Terms also include an earn-out opportunity if certain performance milestones are achieved on additional kiosks deployed in locations currently without a DVD kiosk. The Company anticipates that it will fund the acquisition partly with its own cash and mostly through a facility with its senior lender, Fifth Third Bank. The future earn-out opportunities will be funded through the future operations of the Tejas business.

About Global Axcess Corp

Headquartered in Jacksonville, Florida, Global Axcess Corp was founded in 2001 with a mission to emerge as the leading independent provider of self-service kiosk services in the United States. The Company provides turnkey ATM and other self-service kiosk management solutions that include cash and inventory management, project and account management services. Global Axcess Corp currently owns, manages or operates more than 4,900 ATMs and other self-service kiosks in its national network spanning 43 states.

Investor Relations Contacts:
Sharon Jackson: 904-395-1149
[email protected]

Hayden IR:
Brett Maas or Jeff Stanlis: (646) 536-7331
[email protected] / [email protected]

This press release may contain forward-looking statements. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as: "believes," "expects," "may," "will," "should," or "anticipates," or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. Various important risks and uncertainties may cause the Company's actual results to differ materially from the results indicated by these forward-looking statements. For a list and description of the risks and uncertainties the Company faces, please refer to Part I, Item 1 of the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 3, 2010, and other filings that have been filed with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, and such statements are current only as of the date they are made.

SOURCE Global Axcess Corp - Global Axcess Corp to Acquire Tejas Video With 260 DVD Kiosks

Posted by keefner at November 14, 2010 09:38 AM