Tuesday, July 2, 2013
EcoATM Acquired For $350M By Coinstar
San Diego-based startup EcoATM, the developer of automated kiosks used for recycling cell phones and other electronics, has been acquired by newly renamed Coinstar (now known as Outerwall). According to Outerwall, it will pay $350M in cash for EcoATM. Outerwall already owned 23 percent of ecoATM. ecoATM develops self-serve kiosks--found in many malls--which lets consumers turn in their mobile phones, tablets, and MP3 players for cash.
The acquisition looks to be a great one for EcoATM's investors, which also included Claremont Creek Ventures, Tao Venture Capital Partners, and Jens Molbak. EcoATM had announced only around $31.4M in funding to date. Tao Venture Capital Partners is the investment firm led by Tom Clancy, who had formerly been at Enterprise Venture Partners. EcoATM had only launched its automated kiosks in 2010, and was a winner of the San Diego Venture Group's Pitchfest in 2009.