San Diego, CA - Capstone Partners, a leading international investment banking firm, is pleased to announce that it acted as sole financial advisor to San Diego-based ecoATM Inc. in its $350 million sale to Outerwall Inc.
ecoATM is the first company to create an automated self-serve kiosk system to purchase used mobile phones, tablets and MP3 players for cash. The kiosks use patented, advanced machine vision, electronic diagnostics and artificial intelligence to evaluate electronics. ecoATM's eCycling stations provide a convenient trade-in solution that connects consumers real-time to broad worldwide secondary markets for the best possible pricing.
ecoATM capitalizes on the growing U.S. mobile device market where 175 million new devices are sold annually. Today, only 20% of used mobile phones are collected, with more than 50% being discarded or stored, representing a significant market opportunity. In addition, the demand for refurbished mobile phones continues to accelerate, due largely to growth in emerging markets.
"Outerwall is a great home for ecoATM, and we are excited to build upon our successful relationship to take the business to the next level," said Tom Tullie, chief executive officer of ecoATM. "We look forward to benefitting from Outerwall's resources and expertise to accelerate ecoATM's rollout and bring our innovative solutions to consumers nationwide."
Capstone’s team consisting of David Michaels, Managing Director and Head of Technology & Telecom, and Teak Murphy, Vice President, managed the transaction on behalf of ecoATM. “ecoATM has pioneered kiosk-based electronics device recycling and the diagnostic systems and e-commerce software platform they have developed is game changing,” said David Michaels. “Outerwall is ideally positioned to leverage its unique expertise operating kiosk-based businesses to accelerate the growth and maximize the profitability of ecoATM.”
"Having an experienced M&A advisor such as Capstone Partners on our team was invaluable to us. They really took the time to gain a deep understanding of the technology and operating metrics that drive our business and played a key role in helping us evaluate the strategic implications of this transaction. Capstone did a great job," added Tom Tullie, chief executive officer of ecoATM.
Capstone Partners LLC is a leading international investment banking firm dedicated to serving the corporate finance needs of middle market business owners, investors and creditors. The firm provides merger & acquisition, private placement, corporate restructuring, valuation and financial advisory services. Capstone has significantly expanded its capabilities in the technology sector over the last twelve months with the acquisition of SagePoint Advisors based in California and Grenport Limited based in London. The firm also possesses merchant banking capabilities to actively co-invest in transactions.