8-KOther Events

GLOBAL PAYMENTS INC 8-K Report (Nov 26, 2003)

Filed November 26, 2003For Securities:GPN

Summary

GLOBAL PAYMENTS INC. (GPN) filed an 8-K on November 26, 2003, reporting a significant acquisition that expands its reach in the money transfer market. The company completed the acquisition of Latin America Money Services, LLC (LAMS) and its subsidiaries DolEx Dollar Express, Inc. and DolEx Envios, S.A. de C.V. This strategic move positions GPN to capitalize on the growing consumer-to-consumer electronic money transfer services targeting the Latino community in the United States and their families abroad. The acquisition involved approximately $190 million in consideration, comprising $65 million in cash and $125 million in promissory notes, with a potential additional $10 million contingent payment. The integration of DolEx's operations and its established network of retail branches in the U.S. and Latin America is expected to enhance GPN's "Money Transfer" service offerings. Investors should note that while the acquisition is complete, detailed financial statements and pro forma information will be filed via amendment within 60 days.

Key Highlights

  • 1Global Payments Inc. completed the acquisition of Latin America Money Services, LLC (LAMS) and its subsidiaries DolEx and DolEx Envios.
  • 2The acquisition cost was approximately $190 million, funded by $65 million in cash and $125 million in promissory notes.
  • 3A contingent payment of up to $10 million is possible based on DolEx's 2003 financial performance.
  • 4DolEx is a provider of consumer-to-consumer electronic money transfer services, primarily serving the Latino community in the U.S. and Latin America.
  • 5The acquired business will be integrated into GPN's 'Money Transfer' service, previously known as 'Funds Transfer'.
  • 6DolEx operates a network of hundreds of branches across the United States and has settlement arrangements in Latin America.
  • 7Detailed financial statements and pro forma information related to the acquisition will be filed in an amendment within 60 days.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report the completion of Global Payments Inc.'s acquisition of Latin America Money Services, LLC (LAMS) and its associated subsidiaries, DolEx Dollar Express, Inc. and DolEx Envios, S.A. de C.V., which significantly expands the company's presence in the money transfer market.

Global Payments Inc. paid approximately $190 million for the acquisition. This was financed through a combination of approximately $65 million in cash on hand at closing and the issuance of approximately $125 million in promissory notes.

DolEx is a leading provider of consumer-to-consumer electronic money transfer services to the Latino community. Its acquisition allows Global Payments Inc. to enhance its 'Money Transfer' service offerings and tap into a significant and growing market segment with an established network of U.S. and Latin American locations.

The detailed financial statements and pro forma financial information related to the acquisition are not included in this initial 8-K filing. Global Payments Inc. stated that this information will be filed by amendment no later than 60 days after the initial report date of November 26, 2003.