Redbox and Coinstar operator adds cell phone recycling to its mix.
Outerwall Inc., formerly known as Coinstar Inc., has entered into a definitive agreement to acquire ecoATM for $350 million in cash. The deal will include payoff of certain debts and transaction costs, subject to adjustment for working capital as of closing. Outerwall currently holds a 23 percent ownership stake in San Diego-based ecoATM.
ecoATM is an automated self-serve kiosk system that purchases used mobile phones, tablets and MP3 players for cash. The kiosks use patented machine vision, electronic diagnostics and artificial intelligence to evaluate electronics.
“With ecoATM, Outerwall will advance its evolution into multiple automated retail businesses and increase our exposure to the growing demand for refurbished products and mobile devices across the globe,” says J. Scott Di Valerio, CEO of Outerwall. “As evidenced by our growing investment in ecoATM over the last four years, we are confident that ecoATM’s innovative, environmentally minded business model will continue to resonate with today’s technology savvy consumers.”
“Outerwall is a great home for ecoATM, and we are excited to build upon our successful relationship to take the business to the next level,” says Tom Tullie, ecoATM’s CEO. “We look forward to benefitting from Outerwall’s resources and expertise to accelerate ecoATM’s rollout and bring our innovative solutions to consumers nationwide once the transaction closes.”
Outerwall Inc., based in Bellevue, Wash., operates Redbox DVD vending units and Coinstar change counting and rolling machines.