Private-Equity Group Buys Redbox Parent

BELLEVUE/NEW YORK: Apollo Global Management has announced the acquisition of Outerwall, parent company of the Redbox DVD-rental business, for $1.6 billion.

The deal values Outerwall at $52 per share, a 51-percent premium over the company’s stock price prior to the company’s announcement that it was exploring its strategic and financial alternatives.

Erik E. Prusch, Outerwall’s CEO, noted: “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.”

“We are extremely excited for our funds to acquire Outerwall,” said David Sambur, partner at Apollo. “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.”

In addition to Redbox, Outerwall operates Coinstar money services and ecoATM electronics recycling kiosks.