Outerwall, the Bellevue-based parent company of kiosk businesses including DVD rental service Redbox and change counter Coinstar, has acquired Boston-based gadget trade-in site Gazelle for $18 million.
Founded in 2007, Gazelle buys and sells pre-owned consumer gadgets like smartphones and laptops. The company, which has raised nearly $56 million, paid out more than $200 million to customers trading in used devices last year. However, it has seen recent competition from giants like Apple and wireless carriers who are offering trade-in deals.
Outerwall posted $512 million in revenue for the most recent quarter, which was down 6.9 percent from this time last year, but also saw profits increase by 108 percent to $37.3 million. The company’s stock is up 10 percent over the last month and 3 percent over the last year.
The company’s acquisition of Gazelle is likely connected to its ecoATM kiosk business, which lets people recycle their used electronics in exchange for cash. Outerwall, which purchased ecoATM in 2013 for $350 million in cash, was criticized by an analyst earlier this year who called its ecoATM business a “failure.”