Coinstar Signs Definitive Agreement to Sell Its Money Transfer Business to Sigue Corporation
"We believe that our global money transfer business should complement Sigue's already extensive network of money transfer agents in the United States and Latin America," said Paul Davis, chief executive officer of Coinstar, Inc. "In addition, the sale of the money transfer business allows Coinstar to direct its full efforts toward our automated retail strategy."
Guillermo de la Vina, chief executive officer of Sigue stated, "Following the closing of the transaction, Sigue will become one of the largest global money transfer companies with pay out locations in over 130 countries. This acquisition is complementary with our existing strategy and will allow us to better serve customers here in the U.S. and around the world." He continued, "We are very pleased to enter into this agreement with Coinstar, which will allow both companies to focus on our core competencies and strengths."
Coinstar filed a Current Report on Form 8-K that contains certain additional information regarding the transaction.
Coinstar announced financial results on July 29 that reflected the money transfer business as discontinued operations and provided 2010 third quarter and full year guidance for ongoing operations that did not include results related to the money transfer business.
About Coinstar, Inc.
About Sigue Corporation
Headquartered in Sylmar, California, Sigue is a leading financial services company providing international electronic money transfer services to Mexico, Central America, South America, the Caribbean and the Philippines. The company is privately held and operates through a comprehensive network of agents throughout the U.S., Mexico and Guatemala. Sigue has payment arrangements with leading financial institutions in Mexico, Central and South America including the Caribbean and the Philippines.
Certain statements in the foregoing are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including phrases conveying expectation or intent and other expressions identifying future performance. These forward-looking statements are subject to a number of substantial risks and uncertainties and may be identified by the words "will," "anticipate," "believe," "expect," "may," or "intend," or similar expressions, but their absence does not mean that the statement is not forward-looking. Forward-looking statements are not guarantees of future events, results, performance or conditions, and these may vary materially from those expressed or implied in those statements. Differences may result from actions taken by Coinstar or Sigue, as well as from risks and uncertainties beyond Coinstar's control, including those relating to Sigue. Such risks and uncertainties include, but are not limited to, actions resulting from federal, state, local and foreign laws and regulations or taken by governing bodies, the ability to obtain the required licenses, permits, consents, approvals, authorizations, qualifications and orders from the appropriate U.S. and foreign governmental entities, the acquisition of the required funding by Sigue, Sigue's ability to repay the promissory note, the renegotiation on materially adverse terms of the definitive agreement and the possibility that the transaction will not close or that closing will be delayed. The foregoing list of risks and uncertainties is illustrative, but by no means exhaustive. For more information on factors that may affect Coinstar, please review "Risk Factors" described in Coinstar, Inc.'s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the "SEC"), as well as other public filings with the SEC. These forward-looking statements reflect Coinstar's expectations as of the date hereof. Coinstar undertakes no obligation to update the information provided herein.
First Call Analyst:
SOURCE: Coinstar, Inc.
CONTACT: Marci Maule of Coinstar, Inc., +1-425-943-8277,
Web Site: http://www.coinstar.com/