Redbox completes combination with SPAC; stock set to start trading

The DVD-rental and streaming business Redbox Automated Retail LLC said on Oct. 22 that it completed its previously announced combination with blank-check firm Seaport Global Acquisition Corp.

The new publicly traded entity will be known as Redbox Entertainment Inc. Redbox's common stock and warrants are expected to begin trading on the Nasdaq exchange on Oct. 25 under the ticker symbols RDBX and RDBXW, respectively.

Following its reverse merger with the Seaport Global special purpose acquisition company, Redbox has projected that it will double its revenue in the next two years, largely by converting many of its 40 million customers from physical disc renters to video streamers. The company believes that it can achieve that growth strategy by spinning out from private equity firm Apollo Global Management Inc. and accessing public capital through the SPAC process.

"As a public company, we plan to continue our strong momentum and accelerate our digital transformation. Through this transaction, and the incremental capital it provides, Redbox is equipped to advance our goal of creating a one-stop experience that spans multiple entertainment mediums and simplifies the streaming experience," Galen Smith, CEO of Redbox, said in a statement.