06 Feb Redbox to Acquire the Assets of NCR’s Entertainment Line of Business
Excerpt of press release by NCR Corporation
Companies Also Plan to Sign a Manufacturing and Services Agreement
OAKBROOK TERRACE, IL–(Marketwire – Feb 6, 2012) – Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (NASDAQ: CSTR) today announced that Redbox has agreed to purchase assets of NCR Corporation’s (NYSE: NCR) entertainment line of business. The acquisition includes the purchase of the DVD kiosks, certain retailer contracts, and DVD inventory from NCR’s entertainment line of business. In connection with the asset purchase, Coinstar and NCR also will enter into a strategic supplier arrangement where Coinstar will purchase product and services from NCR.
Redbox will pay up to $100 million for the assets. Through the manufacturing and services agreement, Coinstar will procure from NCR hardware, software and services that will yield $25 million in margin for NCR over five years.
“We are very pleased to enter into this agreement with NCR,” said Scott Di Valerio, chief financial officer of Coinstar, Inc. and interim president of Redbox. “As the global self-service solutions leader, NCR has strong technology, manufacturing and servicing capabilities, and we look forward to leveraging their expertise as Coinstar continues to grow its core automated retail businesses and expands its offerings.”
“Through this agreement with Redbox, NCR will be better positioned to focus on expanding our business in our targeted industries,” said John Bruno, executive vice president and chief technology officer, NCR. “Additionally, this transaction affords us the opportunity to develop a long-term strategic relationship with Coinstar and partner on delivering new and innovative solutions to the market.”
The transaction is subject to regulatory approval and is expected to close in the third quarter of 2012.
Atlas Advisors acted as financial advisor to NCR Corporation in connection with this transaction.
Atlas Advisors is the marketing name for Atlas Advisors, LLC and Atlas Strategic Advisors, LLC. Atlas Strategic Advisors, LLC provides financial advisory services in connection with mergers, acquisitions and other similar transactions. Atlas Strategic Advisors, LLC is a wholly owned subsidiary of Atlas Advisors, LLC and a member of the FINRA.
None of the information contained in this release constitutes a recommendation, solicitation or offer by Atlas Strategic Advisors, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.