ATLANTA & BELLEVUE, Wash. -- InComm has purchased Coinstar Inc.'s E-Payment services business, which includes operations in the United States and the United Kingdom. The aggregate purchase price was $40 million, which is subject to a post-closing net working capital adjustment. The deal does not include Coinstar's core automated retail businesses, which include Coinstar self-service coin counting units and Redbox self-service DVD rental kiosks.
With the transaction, InComm has acquired a comprehensive prepaid product portfolio including approximately 400 individual [image-nocss] prepaid card products from more than 65 unique issuers spanning various prepaid segments, including wireless, long-distance telecom, branded retail gift, financial services and digital entertainment.
"We are pleased to have found a great home for our E-Payment business with InComm, a prepaid industry leader. Our broad product portfolio and targeted distribution combined with InComm's solution will provide retailers an exceptional prepaid offering," said Paul Davis, CEO of Coinstar. "Coinstar will continue to focus on our core strengths in automated retail to serve our consumers, retailers and shareholders."
"This acquisition will expand our retail opportunities, including broadening distribution in convenience stores and will give more consumers easy access to the flexibility of prepaid products," said Brooks Smith, CEO of Atlanta-based InComm. "The E-Pay team, including managers and employees, will be a great addition to InComm's team and we look forward to their contributions to the future growth of our business."
The transaction closed May 25, 2010. Raymond James & Associates, Inc. acted as Coinstar's financial advisor.
Bellevue, Wash.-based Coinstar is a leading provider of automated retail solutions. It also offers money transfer services. The company's services can be found at more than 80,000 points of presence including supermarkets, drug stores, mass merchants, financial institutions, convenience stores, restaurants and money transfer agents.
InComm is a leading marketer, distributor and technology innovator of stored-value gift and prepaid products using point-of-sale (POS) transaction technology and payment solutions to enhance retail product sales and customer experiences. It provides a turnkey solution by leveraging proven retail expertise, patented technology and marketing with design, placement, promotion and messaging at retail. Merchandising, card production, supply-chain logistics and full-category and sales management complete the company's suite of services. InComm is the nation's largest provider of gift cards, prepaid wireless products, reloadable debit cards, digital music downloads, content, games, software and bill-payment solutions, it said, with nearly $10 billion in retail sales transactions processed in 2009. It partners with consumer brand leaders around the world to provide more than 200,000 retail locations the products and services.
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