Redbox has agreed to combine with Seaport Global Acquisition Corp. (Nasdaq: SGAM) in a SPAC deal that values the entertainment company at $693 million.

Once the deal is finalized, a new company will trade on Nasdaq under the ticker symbol RDBX. The company plans to use the raised proceeds to pay down debt and make further investments in innovation in order to accelerate its transformation.

“Today's announcement brings us one step closer to building an entertainment ecosystem and underscores our steadfast commitment to enhancing our customer value proposition. We are pleased that Seaport Global Acquisition shares our confidence in the opportunities ahead and are grateful for their team's expertise and support. In Redbox's next chapter as a public company, we will be focused on delivering a differentiated, affordable entertainment experience for our millions of loyal customers, and seeking profitable growth for shareholders,” said Galen Smith, CEO of Redbox.

Redbox today serves more than 39 million loyalty members. The company hopes to use the raised cash to accelerate its digital transformation and capture a significant and growing market opportunity. Redbox expects to have approximately $209 million in cash after the deal is closed.

"We've long admired Redbox's team for the incredible reputation they've established in the industry, as well as the innovative, scalable business model they've built. Over the past year in particular, the resilience Redbox has demonstrated through the challenges associated with the COVID-19 pandemic reaffirms our confidence in the value and growth potential of the business. We are thrilled to partner with Redbox's team as they work to transform in-home entertainment and deliver long-term growth,” said Stephen Smith, Chairman and CEO of Seaport Global Acquisition.

The transaction will be funded by a combination of $145 million of cash held in the trust account of Seaport Global Acquisition, in addition to PIPE funds of $50 million led by Ophir Asset Management.