April 21, 2009

DVD Kiosks - NCR Completes Purchase of TNR

News that NCR has accelerated its purchase of TNR with the intent of getting to market quicker with Blockbuster. Seems like a week doesn't go by without a story in the news that has "Blockbuster" and "survival" in the same sentence. Two weeks ago BB did manage to complete the refinancing of its credit faciiity (albeit reduced). Stock is down 75% since September and they have had to pull back on initiatives.

NCR Corp. has completed its acquisition of TNR Holdings Corp., the second largest DVD kiosk operator in North America, officials announced Tuesday.

The Dayton-based company (NYSE:NCR) made the purchase to accelerate the installation of Blockbuster-branded DVD rental kiosks in retail locations, such as supermarkets and convenience stores.

“This acquisition is a major step forward in NCR’s strategy of becoming the leading provider of self-service entertainment solutions,” said John Bruno, executive vice president of NCR Industry Solutions Group, in a statement.

NCR has purchased the remaining equity and debt in TNR for cash considerations. Other terms were not disclosed.

TNR operates DVD rental kiosks under the brands “MovieCube” and “The New Release” in supermarkets and grocery stores throughout North America. NCR had been a minority investor in Texas-based TNR since the summer of 2008.

That same year, NCR began a strategic alliance with Blockbuster Inc. (NYSE:BBI) to deploy DVD rental kiosks in a successful pilot program, that was the first step of a national rollout of thousands of units.

NCR employs about 1,300 in Dayton and 20,000 global employees. Stock had risen by 16 cents, or 1.7 percent, in Tuesday afternoon trading, to $9.40 per share.

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Posted by staff at April 21, 2009 01:17 PM