Redbox, which operates a nationwide network of entertainment kiosks, said on Monday (May 17) that it has entered into a definitive deal to merge with publicly traded special-purpose acquisition company (SPAC) Seaport Global Acquisition Corp., according to an announcement.
The deal has gotten the unanimous green light from the boards of directors of Redbox and Seaport Global Acquisition. It is anticipated to be completed in Q3 2021, “subject to the satisfaction of customary closing conditions,” the announcement said.
Redbox will become a publicly traded company with a $693 million enterprise value. Upon completion of the deal, Redbox’s common stock is anticipated to trade under the “RDBX” ticker symbol on the Nasdaq. The move comes a few years after Redbox’s parent company was sold to a private equity firm.
“In Redbox’s next chapter as a public company, we will be focused on delivering a differentiated, affordable entertainment experience for our millions of loyal customers, and seeking profitable growth for shareholders,” Redbox CEO Galen Smith said in the announcement.
Redbox said it serves clients by the way of 40,000 kiosks across a minimum of 150 retail partners, offering “lowest-priced rentals for new theatrical releases.” Roughly seven in 10 of those customers identified as late adopters of novel technology. That gives Redbox “a unique opportunity to convert customers to its digital platforms over time,” according to the announcement. In addition, the company interacts with and incentivizes 39 million members via its Redbox Perks loyalty offering.
“We’ve long admired Redbox’s team for the incredible reputation they’ve established in the industry, as well as the innovative, scalable business model they’ve built. Over the past year in particular, the resilience Redbox has demonstrated through the challenges associated with the COVID-19 pandemic reaffirms our confidence in the value and growth potential of the business,” said Seaport Global Acquisition Chairman and CEO Stephen Smith.
As reported late last year, Redbox introduced on-demand movies and TV programming to its ad-supported streaming service, Redbox Free Live TV.
May 17, 2021 at 03:45PM