Coinstar completes $100M deal for NCR's DVD kiosks
Coinstar Inc. says that it has completed its $100 million acquisition of DVD rental kiosks and other assets from rival NCR Corp.
Under the terms of the deal, Bellevue, Wash.-based Coinstar also assumed certain NCR liabilities related to the assets and entered into a supplier agreement to buy products and services from NCR.
Coinstar said late Monday that the addition of the kiosks will allow its Redbox DVD rental kiosks to expand to new retail partners. The company said that while it expects to initially incur extra costs as it swaps out the acquired kiosks with new Redbox kiosks, the acquisition should begin boosting its profits sometime in 2013.
For the full year 2012, Coinstar said it expects the deal to reduce its profit by 40 cents to 50 cents per share and increase its capital expenditures by between $40 million and $45 million.
The company said it plans to release updated information about the financial effects of the deal when it releases its second-quarter financial results in July.
Coinstar shares fell 79 cents, or 1.2 percent, to $64.60 in afternoon trading. They are down more than 7 percent since peaking for the past year at $69.74 in mid-April. Duluth, Ga.-based NCR shares rose 19 cents to $20.75. They are down 13 percent from their early May high of $23.91.