Sunday, March 22, 2009

Pure Digital, Redbox skip the IPO path

With the market for initial public offerings on hold during the current recession, two consumer technology companies that had planned to go public opted to be acquired instead.
Pure Digital Technologies, maker of the popular Flip pocket camcorders, and Redbox, operator of automated DVD rental kiosks, would have been fun to watch as standalone public companies.
But Pure Digital and Redbox needed to find a different exit strategy to satisfy their investors.
Cisco Systems on March 19 announced its intent to acquire privately held Pure Digital of San Francisco for about $590 million in stock.
Pure Digital has sold more than 2 million Flip Video camcorders, easy-to-use devices for capturing videos and sharing them on YouTube, MySpace and other popular Web sites.
Coinstar, operator of those green coin-counting machines in grocery stores, in February bought the remaining portion of Redbox that it didn’t already own.
It purchased the 44.4% stake in Redbox held by McDonald’s as well as shares held by other minority investors. Redbox is based in Oakbrook Terrace, Ill.

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