The merger transaction, along with private equity and institutional investments, will yield $88 million in cash. Redbox said it plans to use those funds to pay down existing debt, pay transaction costs and fees, fund growth investments, and for general corporate purposes.
There were a bit more than 12.3 million shares redeemed, giving the soon-to-be-public company about 45.4 million shares outstanding. Of those, some 2 million will be immediately tradeable. “Today marks the beginning of Redbox’s next chapter,” CEO Galen Smith said. “Since revolutionizing the way Americans rent movies nearly two decades ago, Redbox has continuously evolved and expanded our reach – all while offering our millions of loyal customers exceptional value in home entertainment. Today, we are building on our legacy and reaffirming our commitment to delivering a wide range of choice and convenience for consumers, as well as value for our Redbox stakeholders.
Redbox was founded in 2002 by business development execs at McDonald’s. The fast-food giant retained a large stake in the company until 2009.