Outerwall (OUTR) to be acquired by Apollo Global Management (APO) for $52 a share

• Outerwall (OUTR) to be acquired by private-equity firm Apollo Global Management (APO) for $1.6B. (7/25/16)
• Outerwall holders are being offered $52 a share, an 11% premium to Friday’s closing price.

    

 

Outerwall Inc., known for its Redbox movie rental kiosks and Coinstar coin counting machines, agreed Monday to be taken private by Apollo Global Management for about $900 million. Outerwall also owns  ecoATM, which provides kiosks for the sale of used phones, MP3 players and tablets.

Apollo will acquire Outerwall, which is based in Bellevue, Wash., for $52 a share, a transaction value of $1.6 billion when including debt, the companies said in a statement.

As more consumers opt to stream movies or rent them “on demand” directly from cable providers, Outerwall’s D.V.D. rental business has suffered. The company’s stock price plummeted between July 2015 and February, after a few years of declining revenue growth. Outerwall’s chief executive, J. Scott Di Valerio agreed to step down in January 2015, with a director, Nora M. Denzel taking over in the interim. Outerwall appointed Erik E. Prusch as chief executive one year ago.