Global Payments (GPN) to Sell DolEx- and Europhil-Branded Money Transfer Businesses for Proceeds of $85-$110M; Comments on FY10 Outlook

November 18, 2009 8:47 AM EST

Global Payments Inc. (NYSE: GPN) announced today that it has signed an agreement to sell its DolEx- and Europhil-branded money transfer businesses to an affiliate of Palladium Equity Partners, LLC.

Under the terms of the agreement, Global Payments will receive proceeds in the range of $85 million to $110 million based on the operating performance of the business determined at the time of closing, which is subject to customary regulatory approvals including the consent to the transaction by the issuers of money transfer licenses in many of the states and countries where DolEx or Europhil currently operates.

Global Payments' Chairman and CEO, Paul R. Garcia, said, "This transaction will allow us to focus exclusively on our ongoing strategy of expanding our merchant acquiring presence around the world, and as such, we intend to reinvest the sale proceeds in future merchant acquiring growth opportunities."

The Company plans to report the results of the Money Transfer business as Discontinued Operations. Excluding the Money Transfer segment, the Company's expectations for FY10 revenue growth would increase to 7%-10% or $1.565-$1.615 billion and FY10 diluted EPS growth increase to 10%-15%, or $2.31-$2.42. The Company plans to share further financial details, including certain non-cash charges related to the divesture on its upcoming fiscal second quarter earnings call scheduled for January 7, 2010.

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