BELLEVUE, WA -- Coinstar Inc. is officially Outerwall Inc., following stockholder approval of the name change on June 27. The company began trading under the new name and Nasdaq ticker symbol OUTR on July 2.
The company proposed the name change last month, explaining it is intended to convey "pushing the walls of retail out into a new dimension through current and future automated retail solutions." It also reflects Coinstar's evolution from a single coin-counting kiosk business into multiple automated retail businesses, including its Redbox DVD rental machines and, most recently, Seattle's Best-branded Rubi coffee vending machines. | SEE STORY
PHOTO: Outerwall Inc. rang bell to open Nasdaq market on July 2. Here, Outerwall chief executive Scott Di Valerio and some of the Outerwall team gather for a historic photo outside the exchange in New York City's Times Square.
In line with its strategy of diversifying its automated retail solutions, the company has agreed to acquire ecoATM for $350 million. EcoATM's self-serve eCycling kiosks allow consumers to trade in their used mobile phones, tablets and MP3 players for cash. The kiosks use electronic diagnostics and artificial intelligence to evaluate electronics to establish a price value and pay consumers on the spot. Outerwall already held a 23% ownership stake in ecoATM, which will remain headquartered in San Diego, CA.
Outerwall estimates that 175 million new mobile devices are sold annually and only 20% of used mobile phones are collected, with more than 50% being discarded or stored, representing a significant market opportunity. The company also said that demand for refurbished mobile phones continues to accelerate, due largely to growth in emerging markets.
The transaction is expected to close in the third quarter of 2013.
"With ecoATM, Outerwall will advance its evolution into multiple automated retail businesses and increase our exposure to the growing demand for refurbished products and mobile devices across the globe," said J. Scott Di Valerio, chief executive of Outerwall. "As evidenced by our growing investment in ecoATM over the last four years, we are confident that ecoATM's innovative, environmentally minded business model will continue to resonate with today's technology savvy consumers."