ACCESS Newswire's Strategic Shift: Selling Compliance Business to Equiniti Trust Company, LLC

ACCESS Newswire Inc. (ACCS), a leading communications and compliance company, has announced the sale of its compliance business to Equiniti Trust Company, LLC for $12.5 million. This strategic move marks a significant shift for ACCESS Newswire, allowing it to fully transition to a communications SaaS subscription model. The transaction is expected to enhance ACCESS Newswire's EBITDA margins and improve monthly recurring revenue, as the company focuses on its core subscriptions: ACCESS IR, ACCESS PR, and All ACCESS.



The sale of the compliance division includes 11 employees and associated contracts, enabling ACCESS Newswire to concentrate on its core competencies and drive growth in its primary business segments. The funds received from the sale will be used to reduce ACCESS Newswire's debt from $15.3 million to approximately $3.3 million, improving the company's financial health and potentially increasing its stock price.

This transaction is a testament to ACCESS Newswire's commitment to innovation, customer service, and value-driven offerings, as stated by CEO Brian Balbirnie: "We are committed to expanding our market share every month, by leading the transformation, innovation and elevated experiences in Public and Investor Relations today."



The sale of ACCESS Newswire's compliance business to Equiniti Trust Company, LLC aligns with broader trends in the communications and compliance industries, particularly the shift towards digital transformation and the increasing importance of regulatory compliance. This transaction highlights the growing demand for digital solutions and the value of specialized compliance services. By divesting its compliance division, ACCESS Newswire can better serve its customers in the public relations and investor relations spaces, while Equiniti Trust Company, LLC gains an expanded service offering and potential new clients.

In conclusion, ACCESS Newswire's sale of its compliance business to Equiniti Trust Company, LLC is a strategic move that enhances the company's financial performance, reduces debt, and aligns with broader industry trends. This transaction is expected to have positive implications for both companies, as well as for investors in the communications and compliance sectors.