Outerwall Inc (OUTR.O), the owner of Redbox video rental kiosks, said it had agreed to be taken private by affiliates of private equity firm Apollo Global Management LLC (APO.N) in a deal valued at about $1.6 billion.
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Under the terms of the agreement, shareholders of Outerwall will receive $52.00 in cash for each share of Outerwall common stock. “We look forward to working with Outerwall’s talented and dedicated team to continue the business’s strong heritage of growth and innovation”.
Former United States Securities and Exchange Commission attorney Willie Briscoe and the securities litigation firm of Powers Taylor LLP are investigating potential claims against the Board of Directors of National Interstate Corporation (“National Interstate”) (NASDAQ: NATL) concerning the sale to Great American Insurance Company.
The transaction was unanimously approved by Outerwall’s Board but is conditioned on a tender deal, which still requires regulatory approvals. LionTree Advisors, Bank of America Merrill Lynch, Barclays, Credit Suisse and Jefferies LLC are advising Apollo.
In addition, on July 24, 2016, the Outerwall Board of Directors declared a quarterly dividend of $0.60 per share of common stock.
The offer also arrives soon after Redbox confirmed it is testing a digital VOD/electronic sell-through offering called “Redbox Digital” that aims to complement the unit’s core kiosk rental business.
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Financing for the buyout deal is provided by Bank of America Merrill Lynch, Jefferies Finance, Barclays and Credit Suisse. Especially high volume was seen for the $52 strike put option expiring August 19, 2016, with 1,249 contracts trading so far today, representing approximately 124,900 underlying shares of OUTR. “Outerwall is a dynamic customer-focused business that delivers superior kiosk experiences that delight consumers and generate value for its retailer partners”. Its products and services are available at over 63, 780 kiosks in supermarkets, drug stores, mass merchants, financial institutions, convenience stores, malls and restaurants.
