Global Axcess Corp., a Jacksonville, Fla.-based ATM ISO, today announced that it has signed a definitive agreement to purchase a privately held company that operates in the unattended DVD rental kiosk business. The agreement's terms were not disclosed.
Global Axcess expects to close its purchase of Tejas Video Partners, which operates more than 260 kiosk locations across the country. Most of the locations are on more than 70 Army and Air Force bases. Tejas Video's primary contract is with The Army and Air Force Exchange Services for DVD rental kiosks, which includes 250 kiosks deployed at 220 locations. AAFES operates facilities at more than 100 domestic and 400 overseas military bases.
The pending deal expands the market for Global Axcess, said George McQuain, the company's CEO. "This acquisition will enable us to gain access to greatly expanded market opportunities," he said. Tejas also has a contract with a small Texas-based convenience store chain for 10 additional DVD rental kiosks.
Once the deal closes, it will have an immediate impact on Global Axcess' bottom line. Global Axcess believes the purchase will add over $1 million in EBITDA in 2011 and increase revenues by more than $4 million. Last year, Tejas reported approximately $4.1 million in revenues.
"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 helping us leverage what they have learned from being in the kiosk business for the past six years," McQuain said. Once the deal is completed, Global Axcess will have more than 600 DVD kiosks deployed.
Global Axcess owns, manages and operates more than 4,900 ATMs and self-service kiosks in 43 states.
