BELLEVUE, Wash., and NEW YORK -- Outerwall Inc., the parent of Redbox movie- and game-rental kiosks, Coinstar coin kiosks and ecoATM electronics recycling kiosks, has entered into a deal for Apollo Global Management LLC to acquire all of the outstanding shares of Outerwall common stock for approximately $1.6 billion, including net debt.
Outerwall’s kiosks are located in neighborhood grocery stores, convenience stores, gas stations, drug stores, mass merchants, quick-service restaurants (QSRs), malls and other retail locations in the United States, Canada, Puerto Rico, the United Kingdom and Ireland.
Following the transaction, Outerwall will become a privately held company, and Outerwall's common shares will no longer be listed on any public market.
The purchase price of $52 per share represents a premium of approximately 51% over Outerwall's closing stock price on March 14, when the company announced that its board had initiated a process to explore strategic and financial alternatives to maximize shareholder value.
"Apollo is an ideal partner to support Outerwall's efforts to continue serving our millions of loyal customers and dedicated retail partners through our unrivaled network of kiosks and automated retail offerings. We look forward to working closely with Apollo as we continue to strengthen our businesses and execute on our strategic plan,” said Erik E. Prusch, CEO of Bellevue, Wash.-based Outerwall.
"Outerwall is a dynamic, customer-focused business that delivers superior kiosk experiences that delight consumers and generate value for its retailer partners. We look forward to working with Outerwall's talented and dedicated team to continue the business's strong heritage of growth and innovation,” said David Sambur, partner at Apollo.
The transaction is conditioned upon satisfaction of the minimum tender condition, which requires that shares representing more than 50% of the company's common shares be tendered and the receipt of certain regulatory approvals and other customary closing conditions.
The parties expect the transaction to close during the third quarter of 2016.
Apollo, New York, is a leading global alternative investment manager with assets under management of approximately $173 billion in private-equity, credit and real-estate funds invested across a core group of industries.
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