Sizmek to be Acquired by Vector Capital

What: Global open ad management Sizmek Inc. has closed an agreement with technology-focused private equity firm Vector Capital , under which an affiliate of Vector will acquire all of the outstanding shares of Sizmek common stock.
Why it matters: Under the terms of the agreement, Vector will commence a tender offer to purchase any and all of the outstanding shares of Sizmek common stock for US$3.90 per share in cash.

descarga (2) descargaSizmek Inc., a global open ad management company that delivers omnichannel campaigns, announced that it has entered into a definitive agreement with affiliates of Vector Capital (“Vector Capital” or “Vector”), a technology-focused private equity firm, under which an affiliate of Vector will acquire all of the outstanding shares of Sizmek common stock for US$3.90 per share in an all-cash tender offer (the “Vector Agreement”).

Vector Capital, founded in 1997, is a San Francisco-based private equity firm that partners with management teams to transform and grow technology businesses.  Over its history, Vector has invested $1.6 billion in more than 40 technology companies, including in the advertising technology space.

“We believe this transaction provides Sizmek with the resources and flexibility to execute upon our long term strategy of becoming the leading independent, global ad management platform,” said Neil Nguyen, President and Chief Executive Officer of Sizmek.  “We are excited to partner with Vector and believe this transaction benefits our customers, employees, partners and shareholders.”

Under the terms of the Vector Agreement, Vector will commence a tender offer to purchase any and all of the outstanding shares of Sizmek common stock for $3.90 per share in cash.  The purchase price represents a 65% premium to Sizmek’s 30-day volume weighted average trading price of $2.36 on August 2, 2016. Upon completion of the transaction, Sizmek will become a privately-held company.

The transaction, which is expected to close by the fourth quarter of 2016, is conditioned upon, among other things, satisfaction of a minimum tender condition, regulatory approvals and other customary closing conditions.  There are no financing conditions associated with the proposed agreement.

J.P. Morgan is serving as financial advisor to Sizmek. Latham & Watkins LLP is acting as Sizmek’s legal advisor. Kirkland & Ellis LLP is acting as Vector’s legal advisor.

“We are enthusiastic to partner with the management team and the talented group of employees at Sizmek,” said Alex Beregovsky, Managing Director at Vector Capital. “We plan to invest in the Company’s growth, to further strengthen its industry-leading open ad management platform, to launch adjacent product offerings as well as to support Sizmek with capital for acquisitions.”

Obtain major insights about passion point marketing (Sports, Multicultural etc). PLUS: Get 1:1 introductions with senior brand and agency executives.


Editorial Staff

Portada Staff

MORE FROM PORTADA

Latcom’s CEO Valentín Bueno: “Out-of-Home Advertising is Unique Because It Is Democratic”

Latcom’s CEO Valentín Bueno: “Out-of-Home Advertising is Unique Because It Is Democratic”

We talked to Valentín Bueno, CEO at Latcom, about why out-of-home advertising is growing more than any other advertising media. Out-of-home advertising has always been important, but technological advancement creates more and better opportunities for engaging consumers, which means the industry needs to adapt just as other advertising media. 


Tampico’s Marta Gerdes: “The Key to Marketing is Staying True to the Brand’s Essence While Keeping the Consumer at the Forefront”

Tampico’s Marta Gerdes: “The Key to Marketing is Staying True to the Brand’s Essence While Keeping the Consumer at the Forefront”

Tampico has updated its branding for the first time in about 25 years. A new, refreshed image will help Tampico reach its consecrated consumers, as well as the new generations.


JC Penney, MillerCoors, Wilson, and Oath Share 4 Essential Principles for Effective Shopper Marketing

JC Penney, MillerCoors, Wilson, and Oath Share 4 Essential Principles for Effective Shopper Marketing

The term 'Shopper Marketing' has been around for some time, but there's still not as much attention focused on "shoppers" as there is on "consumers", which could mean a missed growth opportunity. We talked about Shopper Marketing to JC Penney's Ana Lucía Soto, MillerCoors' Turiya Luzadder, Wilson's Ángel Carmona, and Oath's Maya Abinakad and Denise Brien.