Sizmek to be acquired for US$122m

Digital ad management vendor is picked up by private equity firm in a deal expected to close in Q4

Sizmek is the latest ad tech vendor to be picked up by a private equity firm after Vector Capital made a deal to acquire the company for US$122 million (AUD$160.3m).

The vendor, which provides programmatic advertising management solutions, is being picked up for $3.90 per share in cash, a purchase price that represents a 65 per cent premium on its average trading price in recent months. The deal is expected to close in Q4 of this year.

In a statement, Vector Capital MD, Alex Beregovsky, said the firm planned to invest in the company’s growth, work to strengthen its open ad management platform, launch adjacent product offerings and bolster Sizmek’s coffers so it can make further strategic acquisitions.

Just last year, Sizmek purchased mobile DSP, StrikeAd, in a deal worth US$11.7 million, as well as PointRoll, a multi-screen digital ad tech and services company with technology for customising ads based on inventory, demographics and location, for US$20m.

“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 Sizmek president and CEO, Neil Nguyen.

“We are excited to partner with vector and believe this transaction benefits our customers, employees, partners and shareholders.”

Sizmek is arguably one of the older adtech players in the market and has been operating for 15 years, initially under the Digital Generation brand, before rebranding to Sizmek in 2013. The decision came after it sold its linear TV ad delivery division to Extreme Reach. It then went public on the Nasdaq in February 2014.

It claims to have about 19,000 advertisers and 3700 agency customers, and serve more than 1.3 trillion impressions per year through all forms of digital advertising campaigns. Prior to the acquisition agreement, its market capitalisation sat at US$72.8m.

Its new owner, Vector Capital, has invested US$1.6 billion in more than 40 technology companies, including retail marketing automation platform vendor, Emarsys, security management software player, LanDesk, and security vendor, Watchguard.

The Sizmek acquisition is the latest in a string of private equity purchases in the martech and adtech space this year. In April, Teradata's marketing applications business was purchased for US$900m by Marlin Equity Partners, while in June, marketing automation player, Marketo, was snapped up by Vista Equity Partners for US$1.79bn.

Other notable private equity purchases in the space in the last 1-2 years include Symphony Technology Group’s acquisition of Experian Marketing Services’ consumer insights division ($47m), EQT’s majority stake investment into Sitecore, Cathay Capital buying ad platform, Smart AdServer, RockBridge Growth Equity’s acquisition of digital agency, Triad Retail Media, and Audax Group’s purchase of out-of-home ad delivery platform, AllOver Media.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

How to create profitable pricing

How do we price goods and services? As business leaders, we have asked ourselves this question since the history of trading.

Lee Naylor

Managing partner, The Leading Edge

Sport and sponsorship: The value of event sponsorship

Australia’s cricketers captured the nation’s attention during their recent run to the semi-final of the ICC Men’s World Cup. While the tournament ultimately ended in defeat, for over a month it provoked a sense of belonging, hope and empowerment for millions of people across Australia. Cricket, and sport in general, has a near-unique ability to empower individuals, irrelevant of their background, demographic or nationality.

Nikhil Arora

Vice-president and managing director, GoDaddy India

AI ethics: Designing for trust

As artificial intelligence (AI) becomes much more prevalent and increasingly a way of life, more questions are being asked than answered about the ethical implications of its adoption.

Katja Forbes

Founder and chief, sfyte

I live the best deals at LA Police Gear.

Tyrus Rechs

6 Ways to ramp up Social Media to Your Web Design

Read more

Its absolute over priced acquisition. The CEO, must be fired for this all cash transaction. Absolutely no justification for prospective P...

about_face

Analysts question long-term play of SAP's acquisition of Qualtrics

Read more

Very well written Nikhil! Indeed this is a big ticket investment, but the impact on brand, sales and employee motivation should make it w...

Yugal Sachdeva

Sport and sponsorship: The value of event sponsorship

Read more

As someone with both experience in marketing and working with UiPath both, I can say that I cannot wait to see more marketing processes u...

CiGen RPA

What robotic process automation can do for marketers

Read more

10 Business applications of virtual reality (VR) technologyhttps://www.sendiancreation...virtual reality

sendian creations

The new wave of VR applications

Read more

Latest Podcast

More podcasts

Sign in