Outerwall agreed to a US$350 million acquisition deal with ecoATM today. The company, formerly called Coinstar, had a minority stake in ecoATM. The deal is expected to be closed later this year.
With the complete acquisition, Outerwall will be the sole owner of ecoATM. The transaction was avdised by Morgan Stanley & Co., while ecoATM's financial advisor was Capstone Partners.
EcoATM's portfolio of investors included Tao Ventures, Claremont Creek Ventures, and Falcon Investment Advisors. The firm was a phone and gadget recycling kiosk distributor.
Due to Outerwall's 23% minority stake in ecoATM, the actualy cash payment will be reduced to consider this chuck of the stake.
The kiosks of ecoATM utilized patented, electronic and artificial intelligence for electronics evaluation.
The company highlighted the industry's opportunity to grow, citing instances of discared and stored used mobile phones. They also said that the demand for phone refurbishing is accelerating, brought about by emerging market growth.
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