Outerwall Inc. Announces Completion of Acquisition by Certain Funds Managed by Affiliates of Apollo Global Management
BELLEVUE, Washington, September 27, 2016
Outerwall Inc. Announces Completion of Acquisition by Certain Funds Managed by Affiliates of Apollo Global Management, LLC
Outerwall Inc. today announced the successful completion of its agreement to be acquired by affiliates of certain funds managed by affiliates of Apollo Global Management, LLC together with its consolidated subsidiaries for $52.00 per share in cash.
Apollo and Outerwall also announced that the Company’s segments will be managed and operated as three distinct businesses and named leadership for each of those units. Galen C. Smith was named Chief Executive Officer of Redbox, and James H. Gaherity and David D. Maquera were promoted from serving as Presidents to Chief Executive Officers of the Coinstar and ecoATM businesses, respectively. In connection with the closing of the transaction, Erik E. Prusch, Chief Executive Officer of Outerwall, will be leaving the Company.
“I am extremely excited to lead the Redbox team and work with Apollo as we continue to provide new movie and video game releases to millions of loyal consumers at a great value,” Mr. Smith said. “We believe there are many attractive opportunities for us to build on Redbox’s unrivaled brand while enhancing our already strong relationships with Redbox’s studio and retail partners.”
Mr. Gaherity said, “The Coinstar business is the leading multi-national, fully automated network of self-service coin-counting kiosks, processing more than $3 billion of coins annually and serving millions of consumers every year. We look forward to working with Apollo to grow our business and build upon our rich, 25-year history.”
“With a network of over 2,400 kiosks and an online solution through Gazelle.com, ecoATM provides the best solution for customers to turn their used mobile phones into cash,” said Mr. Maquera. “We have delivered significant financial and operational progress this year and I look forward to teaming with Apollo and our outstanding employees as we take the ecoATM business to the next level.”
“We are pleased that the transaction has closed and we look forward to working with the respective business leaders and their talented and dedicated colleagues to provide unsurpassed customer experiences and value to our retail partners,” said David Sambur, partner at Apollo. “In addition, I would like to thank Erik for his service and leadership and we wish him the best in his future endeavors.”