Monday, July 25, 2016
EcoATM Parent Outerwall Acquired By Private Equity Investor
Outerwall, the parent company of San Diego's EcoATM, has agreed to a private equity buyout by Apollo Global Management, about five months after Outerwall launched an effort to find a buyer. EcdoATM is a San Diego company which operates cell phone recycling kiosks at malls and other locations across the nation, and had been the target of activist investors, unhappy with that unit's financial performance. Apollo said it would pay approximately $1.6 billion, or $52.00 per share in cash, for Outerwall. EcoATM had laid of 107 people in San Diego, as it responded to those threats and was attempted to cut its costs. Outerwall also owns Redbox and Coinstar. Outerwall had acquired EcoATM in 2013 for $350M. It's unclear what the private equity acquisition means for EcoATM's San Diego operations.