|Coinstar subsidiary acquires NCR entertainment business|
|Tuesday, 26 June 2012 13:14|
Redbox Automated Retail, a wholly-owned subsidiary of Coinstar, has completed the acquisition of certain assets of American firm NCR’s self-service entertainment DVD kiosk business, including DVD inventory, intellectual property, and certain retailer contracts.As per the agreement, Redbox has paid $100m to NCR and assumed certain liabilities related to the purchased assets.
NCR and Coinstar have also entered into a strategic supplier arrangement whereby Coinstar, Redbox or an affiliate will purchase products and services from NCR that will yield $25m in margin for NCR over five years.
Coinstar chief financial officer Scott Di Valerio said with the closing of the NCR transaction, the firm has strengthened its ability to bring the value and convenience of Redbox entertainment to new retail partners and their customers.
"While we expect to incur losses during the initial period, as we swap out the acquired kiosks for new Redbox kiosks, we expect the economics to improve and become accretive sometime in 2013," Valerio added.
Coinstar has over 36,800 Redbox DVD kiosks and 20,200 coin-counting kiosks in supermarkets, drug stores, mass merchants, financial institutions, convenience stores and restaurants.