News

Global Axcess agrees to sell ATM business to FCTI, files for bankruptcy

August 9, 2013

Global Axcess Corp., a provider of ATM services and DVD self-service kiosks, has entered into an asset purchase agreement with Financial Consulting & Trading International Inc. Under the agreement, FCTI will acquire substantially all of the assets of the company's ATM business for aggregate consideration of $10 million. 

Global Axcess Corp. currently owns, manages or operates more than 4,900 ATMs and DVD kiosks in a national network spanning 43 states. The company's DVD assets will be sold separately. The company intends to conduct uninterrupted business operations through the sale period.

FCTI, a wholly owned subsidiary of Seven Bank Ltd., has agreed to serve as the stalking horse bidder for the sale process, which allows other interested parties to come forward with competing bids.

The sale of its ATM business could allow Jacksonville, Fla.-based Global Axcess to emerge with financial backing from a new owner with substantial experience in the ATM industry, the company said in a news release. 

To facilitate the sale, GAC and its business units have filed voluntary petitions under Chapter 11 in the U.S. Bankruptcy Court for the District of Nevada. The company has obtained a commitment from Fifth Third Bank for debtor-in-possession financing of approximately $1.5 million, subject to court approval.

"The sale and filing are necessary next steps to complete the company's transformation and position the company for the future, as we remain confident in our existing pipeline of business opportunities and the strength of our service offering," said Kevin L. Reager, president of Global Axcess.

"We are pleased to have attracted a strong financial partner for our business, and we hope to complete the sale swiftly to make the process as seamless as possible."

Global Axcess is being advised by MorrisAnderson and Golding & company as its financial advisors and Smith, Gambrell & Russell as legal counsel. FCTI is being advised by Skadden, Arps, Slate, Meagher & Flom as legal counsel.

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