8-K/AOther Events

GLOBAL PAYMENTS INC 8-K/A Report (Jan 23, 2004)

Filed January 23, 2004For Securities:GPN

Summary

This Form 8-K/A is an amendment to a previous filing by Global Payments Inc. (GPN) regarding its acquisition of Latin America Money Services, LLC (LAMS). The amendment provides crucial post-closing purchase price adjustments and includes the necessary financial statements for the acquired business. The acquisition, which closed on November 12, 2003, involved the merger of a GPN subsidiary into LAMS, ultimately making LAMS and its subsidiaries DolEx Dollar Express, Inc. (DolEx) and DolEx Envios, S.A. de C.V. wholly or majority-owned by Global Payments. This strategic move expands GPN's reach into the electronic money transfer market targeting the Latino community in the U.S. and Latin America. Investors are provided with detailed information on the transaction structure and the total consideration paid, amounting to approximately $192 million. This consideration comprised a mix of cash, promissory notes, and GPN common stock. The filing also notes the potential for contingent payments based on DolEx's 2003 performance, offering further insight into the deal's upside. The inclusion of audited and unaudited financial statements for the acquired LAMS operations, along with pro forma financial information, allows investors to better assess the financial impact and potential synergies of this significant acquisition.

Key Highlights

  • 1Global Payments Inc. (GPN) filed an amendment to its Form 8-K to include post-closing purchase price adjustments and required financial statements for the acquisition of Latin America Money Services, LLC (LAMS).
  • 2The acquisition of LAMS, which operates primarily through DolEx Dollar Express, Inc. (DolEx), closed on November 12, 2003.
  • 3The total consideration paid for the acquisition was approximately $192 million, consisting of cash, promissory notes, and GPN common stock.
  • 4Potential contingent payments may be made to LAMS members and DolEx Class B shareholders based on DolEx's 2003 performance.
  • 5The acquisition integrates DolEx's money transfer services, targeting the Latino community in the U.S. and Latin America, into GPN's operations, with DolEx revenue to be reported under GPN's "money transfer" service offerings.
  • 6The filing includes audited financial statements for LAMS for the years ended December 31, 2002 and 2001, and unaudited financials for the nine months ended September 30, 2003.
  • 7Unaudited pro forma combined financial statements for the year ended May 31, 2003, and the six months ended November 30, 2003, are also provided.

Frequently Asked Questions

This filing is an amendment to a previous Form 8-K. Its primary purpose is to provide additional details regarding the acquisition of Latin America Money Services, LLC (LAMS), including post-closing purchase price adjustments and to formally include the necessary financial statements of the acquired business (DolEx) as required by SEC regulations.

The total consideration paid for the LAMS acquisition was approximately $192 million. This was financed through a combination of $61 million in cash, $114 million in promissory notes issued to LAMS members and DolEx Class B shareholders, and approximately $8 million worth of Global Payments Inc. common stock.

Yes, Global Payments Inc. may be required to make further contingent payments to the LAMS members and DolEx Class B shareholders. These payments are primarily contingent upon DolEx achieving certain performance levels for the calendar year 2003.

LAMS, operating through its subsidiary DolEx Dollar Express, Inc., is a provider of consumer-to-consumer electronic money transfer services targeting the Latino community in the United States and their beneficiaries in Latin America. This acquisition expands Global Payments' service offerings into the international remittance market, aligning with their strategy to grow in key payment segments.