Global Payments Expands Worldwide Presence in Money Transfer Industry through Acquisition of Europhil

    ATLANTA, Dec. 22 /PRNewswire-FirstCall/ -- Global Payments Inc.
 (NYSE:   GPN), a worldwide provider of electronic transaction processing
 solutions, today announced that it has acquired a group of European electronic
 money transfer firms from individual investors.  These firms operate
 collectively under the name Europhil.
     (Logo:  http://www.newscom.com/cgi-bin/prnh/20010221/ATW031LOGO )
     Founded in 1989, Europhil was one of the first money transfer firms
 established in Spain.  Based in Madrid, the group operates 26 retail branches
 in Spain, Belgium and the United Kingdom.  Europhil's vast settlement network
 includes approximately 1,000 locations in over 20 countries.  More than 80
 percent of its money transfers are sent to Latin American countries, including
 Ecuador, Columbia, Bolivia and Brazil.  Most of its remaining money transfers
 are sent to African and Asian countries, including Morocco, the Philippines
 and India.
     "We are pleased to expand our position in the fast-growing money transfer
 industry," said Paul R. Garcia, chairman, president and CEO of Global
 Payments.  "With this strategic acquisition, we are entering a new region
 outside the U.S. with large fund flows into our core Latin American market, in
 addition to accessing new and attractive money transfer regions in Europe,
 Africa and Asia," continued Garcia.
     "Europhil is remarkably similar to DolEx in its early stages, with a
 fixed-cost business model, a dedicated management team and a potential for
 high growth," added Raul Limon, who, as president of DolEx, will have
 responsibility for Europhil.  "We are excited about this unique opportunity to
 combine our strengths and expand our share of these large markets," continued
 Limon.
     For calendar year 2004, Europhil anticipates approximately $12 million in
 revenue.  Over the long term, Global anticipates strong revenue growth and
 earnings accretion from this transaction, as the company expands Europhil's
 branch presence, enters new fund flow corridors and leverages its DolEx
 channel.  In its second quarter earnings release, Global will update its
 fiscal 2005 guidance to reflect this acquisition.
     Global Payments will discuss this transaction during an earnings
 conference call on December 23, 2004 at 10:30 a.m. EST.  The call may be
 accessed by calling 1-888-790-1641 (U.S.) or 1-210-234-8000 (internationally),
 or via the company's Web site at http://www.globalpaymentsinc.com by clicking
 the "Web Cast" button.  The pass code for callers is GPN.  A slide
 presentation will be available during the call on Global's Web site, and a
 replay of the call will also be available on this site through January 12,
 2005.
     Global Payments Inc. (NYSE:   GPN) is a leading provider of electronic
 transaction processing services for consumers, merchants, Independent Sales
 Organizations (ISOs), financial institutions, government agencies and multi-
 national corporations located throughout the United States, Canada, Latin
 America and Europe. Global Payments offers a comprehensive line of processing
 solutions for credit and debit cards, business-to-business purchasing cards,
 gift cards, check guarantee, verification and recovery including electronic
 check services, as well as terminal management and money transfer services.
 For additional information about the company and its services,
 visit http://www.globalpaymentsinc.com .
 
     This announcement and comments made by Global Payments' management during
 the conference call may contain forward-looking statements pursuant to the
 "safe-harbor" provisions of the Private Securities Litigation Reform Act of
 1995. These forward looking statements involve risks and uncertainties such as
 product demand, market and customer acceptance, the effect of economic
 conditions, competition, pricing, development difficulties, foreign currency
 risks, costs of capital, continued certification by credit card associations,
 the ability to consummate and integrate acquisitions, and other risks detailed
 in the Company's SEC filings, including the most recently filed Form 10-Q or
 Form 10-K, as applicable. The Company undertakes no obligation to revise any
 of these statements to reflect future circumstances or the occurrence of
 unanticipated events.
 
 
                                   Fact Sheet
 Global Payments Expands Worldwide Presence in Money Transfer Industry through
                            Acquisition of Europhil
 
     Acquisition Summary:
     Global Payments ("Global") has acquired a group of European electronic
 money transfer firms ("Europhil" or the "company") from individual investors.
 These firms operate collectively under the name Europhil.  Global used
 existing cash to complete the acquisition, which is not subject to regulatory
 approval or other conditions.
 
     Description of Europhil:
     Founded in 1989, Europhil was one of the first money transfer firms
 established in Spain.  Based in Madrid, the company operates 20 retail
 branches in Spain, 4 in Belgium and 2 in the United Kingdom.  Europhil's
 branches are located in major cities with large immigrant populations,
 including Madrid, Barcelona, Brussels and London.  The company serves a
 growing market of immigrant customers who send a portion of their earnings to
 relatives in their home countries.  Europhil's vast settlement network
 includes approximately 1,000 locations in over 20 countries.  This settlement
 network primarily includes bank branches, currency exchange houses and money
 transfer firms.  More than 80 percent of its money transfers are sent to Latin
 American countries, including Ecuador, Columbia, Bolivia, Brazil, the
 Dominican Republic and Peru.  Most of its remaining money transfers are sent
 to African and Asian countries, including Morocco, the Philippines and India.
 
     The Electronic Money Transfer Industry:
     The money transfer industry is a large and growing market primarily due to
 increased population migration and the continued immigrant usage of money
 transfer firms.  According to 2003 data from the International Monetary Fund
 ("IMF") and the Inter-American Development Bank ("IADB"), Western Europe and
 the U.S. are two of the largest origination regions for money transfers
 ($52 billion and $34 billion, respectively), and Latin America is one of the
 largest destination regions ($38 billion).
 
     Management:
     Europhil has more than 200 employees, including an experienced management
 team that will remain with Global Payments and will be managed through Global
 Payments' DolEx channel.  DolEx is a leading provider of money transfer
 services to Latino customers and has approximately 660 retail branches in the
 U.S. and 10,000 settlement locations in Latin America.
 
     Competitive Advantages:
     DolEx and Europhil share many competitive advantages.  Among these include
 a branch model that provides more control over the customer experience and
 creates more financial leverage than the agent model.  Both DolEx and Europhil
 have customer card programs that not only promote brand loyalty, but also
 allow for fast, convenient transactions.  More than 80 percent of DolEx's
 transactions are made using over 850,000 issued "Amigo Latino" cards, and more
 than 70 percent of Europhil's transactions are made using over 75,000 issued
 "Club Europhil" cards.  DolEx and Europhil also have proprietary, leading-edge
 technology platforms that allow for real-time control over the majority of
 operations, including pricing, compliance and settlement.  Both technology
 platforms meet or exceed regulatory requirements, resulting in favorable
 compliance reports from government audits.  Finally, both DolEx and Europhil
 offer an expansive settlement network that management believes is the largest
 in Latin America.
 
     Growth Opportunities:
     Europhil has many significant growth opportunities.  According to the
 IADB, money transfer volume to Latin America (Europhil's largest settlement
 region) has grown 18 percent per year from 2000 to 2003.  Further, according
 to the IMF, money transfer volume sent from Spain (Europhil's largest
 origination market) was approximately $4 billion in 2003, reflecting growth of
 26 percent per year since 1999.  Spain's recent money transfer growth has
 primarily been due to an aging native population and the related influx of
 immigrants needed in the workforce (20+ percent average annual immigrant
 growth from 2000 to 2003) to fuel Spain's recently strong economic expansion
 (7 percent average annual GDP growth from 1999 to 2003).  In addition to
 benefiting from these macro trends, Europhil's growth opportunities also
 include expanding its branch footprint by either opening or acquiring new
 locations, developing new services, expanding its settlement presence,
 leveraging the market presence and management experience of DolEx and entering
 new fund flow regions.
 
     Financial Summary:
     For calendar year 2004, Europhil anticipates approximately $12 million in
 revenue.  Global expects the acquisition will be non-dilutive to earnings per
 share.  Over the long term, Global anticipates strong revenue growth and
 earnings accretion from this transaction, as it expands Europhil's branch
 presence, enters new fund flow corridors and leverages its DolEx channel.
 
     Global Payments Web Conference:
      December 23, 2004 at 10:30 a.m. EST
      U.S. access telephone number: 1-888-790-1641
      International access telephone number: 1-210-234-8000
      The call pass code is GPN
 
     A replay of the conference will be available through January 12, 2005.  A
 copy of the press release announcing the acquisition is posted on the Global
 Payments Inc. Web site.  A slide presentation describing the acquisition will
 also be posted to the Web site during the conference call. Web site URL
 is http://www.globalpaymentsinc.com .
 
      Investor Relations Contact:  Jane M. Forbes
                                   770 829-8234 Voice
                                   Investor.relations@globalpay.com
      Media Relations Contact:     Phyllis McNeill
                                   770 829-8245 Voice
                                   phyllis.mcneill@globalpay.com
 
 

SOURCE Global Payments Inc.

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.