PONTE VEDRA, Fla. - Global Axcess Corp. (OTC Bulletin Board: GLXS), a provider of ATM services and transaction processing, has signed a formal letter of intent to acquire an independent ATM company which owns and operates 166 ATM sites stationed up and down the East Coast from Massachusetts to Florida.
According to a news release, Global Axcess expects to complete the acquisition of the unnamed company on or before June 15. The proposed terms have not been disclosed at this time.
Based on its historical financial results, the acquisition is expected to contribute approximately $1 million in annual revenue, about $330,000 of annual EBITDA and more than $180,000 in annual income to Global Axcess, according to the release.
In February, Global Axcess completed a private placement of its common stock with two institutional investors, Renaissance Capital Group and Barron Partners, for a total of $3.5 million, with the proceeds used to complete an acquisition of 900 ATM/merchant contracts from Progressive Ventures, a Texas corporation with ATMs in the Southeastern and Southwestern U.S. Global Axcess paid $3.9 million in cash for Progressive Ventures.
(See related story Global Axcess raises $3.5M, funds to pay for acquisition)
