Coinstar (CSTR) Says Redbox Completes NCR Corp. (NCR) DVD Kiosk Acquisition; Adjusts Outlook
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Price: $58.31 -0.9%
Revenue Growth %: +1.1%
Financial Fact:
Basic earnings per share: 1.21
Today's EPS Names:
CEDU, CHC, CIDM, More
Revenue Growth %: +1.1%
Financial Fact:
Basic earnings per share: 1.21
Today's EPS Names:
CEDU, CHC, CIDM, More
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Coinstar, Inc. (Nasdaq: CSTR) announced that Redbox Automated Retail, LLC, its wholly owned subsidiary, had completed the acquisition of certain assets of NCR Corporation's (NYSE: NCR) self-service entertainment DVD kiosk business, including DVD kiosks, DVD inventory, intellectual property, and certain retailer contracts.
Under the terms of the asset purchase agreement, Redbox paid NCR $100 million and assumed certain liabilities of NCR related to the purchased assets. In connection with the asset purchase, Coinstar and NCR have entered into a strategic supplier arrangement whereby Coinstar, Redbox or an affiliate will purchase products and services from NCR that will yield $25 million in margin for NCR over five years.
Coinstar provided an initial view of the expected impact of the asset purchase on certain financial measures and estimates the transaction will for the full year 2012:
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Under the terms of the asset purchase agreement, Redbox paid NCR $100 million and assumed certain liabilities of NCR related to the purchased assets. In connection with the asset purchase, Coinstar and NCR have entered into a strategic supplier arrangement whereby Coinstar, Redbox or an affiliate will purchase products and services from NCR that will yield $25 million in margin for NCR over five years.
Coinstar provided an initial view of the expected impact of the asset purchase on certain financial measures and estimates the transaction will for the full year 2012:
- Decrease diluted earnings per share from continuing operations between $0.40 and $0.50 per share; and
- Increase capital expenditures between $40 million and $45 million.
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