ACCESS Newswire announces sale of compliance business to Equiniti

ACCESS Newswire (ACCS) announced the completion of the sale of its compliance division to Equiniti Trust Company for $12.5 million, subject to certain post-closing adjustments. This transaction, which closed February 28, 2025, is a significant step in ACCESS Newswire’s strategic transformation into a pure-play communications SaaS subscription business.The Company will use the full initial proceeds of $12 million to reduce its outstanding bank debt from $15.3 million to approximately $3.3 million. As a result of the outstanding debt reduction, ACCESS Newswire has also restructured and amended the term loan to reflect its new balance, renewed its line of credit, and reduced its financial covenants. The streamlined business model is expected to set the communications business up to deliver enhanced EBITDA margins and predictable monthly recurring revenue through its subscription-based platform. The transaction enables ACCESS Newswire to focus exclusively on transitioning its over 10,000 customers into its three comprehensive fixed-fee subscriptions: ACCESS IR: Essential investor relations tools and distribution ACCESS PR: Comprehensive press release distribution, public relations, and media outreach All ACCESS: Complete suite of communications solutions subscription In connection with the Company’s recent comprehensive rebranding initiative and the sale of the compliance business, the Company will record certain non-cash charges in the fourth quarter of 2024 and first quarter of 2025. The Company will also recognize certain accounting adjustments related to discontinued operations from the sale of the compliance business. These non-cash charges and discontinued operations accounting treatments will be reflected in the Company’s upcoming financial statements but are not expected to impact the Company’s cash flows or ongoing operations.