Acquisition represents an opportunity for GAXC to substantially grow kiosk business at United States military facilities
Transaction Brings Total Number of Deployed DVD Kiosks to Over 600
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.”









