Redbox parent to be acquired in $1.6 billion deal
Bellview, Washington-based Outerwall Inc., the parent of Oakbrook Terrace-based Redbox, said Monday it agreed to merge with New York-based Apollo Global Management LLC in a deal valued at $1.6 billion.
The all-cash deal still needs to get regulatory approvals before it can close, possibly in the fall.
When the deal closes, Outerwall will become a privately held company and its common shares will no longer be listed on any public market.
"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, Outerwall's chief executive officer.
"Outerwall is a dynamic customer-focused business that delivers superior kiosk experiences that delight consumers and generate value for its retailer partners," said David Sambur, a partner at Apollo.
Redbox offers new-release DVD, Blu-ray and video game rentals through its network of self-service kiosks. Redbox has rented more than 4 billion discs and is available at nearly 35,000 U.S. locations, including grocery, drug and convenience stores, and select Walgreens, Wal-Mart and McDonald's locations.
Redbox downsized its Oakbrook Terrace headquarters and moved some of its operations to Los Angeles last summer.