Sizmek to sell DMP and DSP following bankruptcy filing

Sizmek ​filed for Chapter 11 bankruptcy earlier this month​

Sizmek has been thrown a lifeline, with reports Zeta Group plans on buying the embattled adserver’s DMP and DSP for around US$36 million.

Sizmek filed for Chapter 11 bankruptcy earlier this month.

The company’s board of directors confirmed it along with seven affiliated debtors had initiated Chapter 11 proceedings in the US Bankruptcy Court, a move taken to preserve company value while it looks to find alternative business funding arrangements. The group includes X Plus One and Two Solutions, Point Roll, Wireless Artist and WirelessDeveloper.

The company is claiming debtor’s aggregate debt is just over $2.5 million and estimated both assets and liabilities to be worth at least $100 million. Its top five creditors among a list of 60 unsecured claims are Index Exchange ($8.9m), PubMatic ($7.3m), OpenX Technologies ($5.9m), AppNexus ($5.2m) and Google ($4.5m). The company estimates between 1000 and 5000 creditors in total.

Sizmek is one of a number of adtech companies to be acquired by private equity – this time Vector Capital – which picked up the business in August 2016 in a deal worth US$122 million. Yet according to a report in AdExchanger, Vector has been unwilling to front up further cash to support Sizmek’s business model. This, combined with softer revenues, led to the Chapter 11 decision.

According to Bloomberg, Sizmek filed a motion in the US Bankruptcy Court for the sale of ‘certain assets’ on April 19 and is seeking the Court’s approval for the sale.

Sizmek hopes to sell assets to Zeta Global Holdings, for a purchase price of approximately US$33 million to US$36 million, consisting of $10 million in cash, payable on closing; $5 million in preferred equity; and a share of the future collections on accounts receivable, specifically, 50 per cent of the first $10 million; 70 per cent of the second $10 million; and 60 per cent of all remaining collections.

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

Latest Videos

Conversations over a cuppa with CMO: Coles Group's Lisa Ronson

​In this week's instalment of Conversations over a Cuppa with CMO, we talk with Coles Group CMO and our former #1 in the CMO 2018, Lisa Ronson, about how the supermarket giant has approached marketing and customer engagement and how she's coped with the transformative and significant impact of the COVID-19 crisis as a leader and brand strategist.

More Videos

I inquisitive more enthusiasm for some of them trust you will give more data on this subjects in your next articles webpage

Jennifer Reagan

Melbourne Fashion Week: Using digital and insight to drive engagement and attendance

Read more

I recommend only good and reliable information, so see it webpage

Jennifer Reagan

What automated design is going to do to 3D printing and product customisation

Read more

Thanks, that was a really cool read webpage

Jennifer Reagan

Report: Accountability key to marketing's influence in business

Read more

Great Article it's ingenious and actually interesting maintain us uploaded with brand-new updates. its was really beneficial. many thanks...

Jennifer Reagan

Foxtel employs wearable technology to give AFL fans a more sensory experience

Read more

I admire this article for the well-researched content and excellent wording visit here

Jennifer Reagan

Will 3D printing be good for retail?

Read more

Blog Posts

The 10 commandments of marketing in COVID times

With social and economic uncertainty and the changing political landscape, how can CMOs adapt to seize opportunity?

Duncan Wakes-Miller

GM, marketing, Audika Australia and New Zealand

Why direct response advertising is winning this year

In response to the COVID-19 crisis, brands around the globe are going into hibernation and waiting out the ongoing storm. CMOs have dramatically slashed their budgets across every single form of media, digital included.

Sabri Suby

Founder, King Kong

Taking back control of your tech

To win in customer experience, brands need to take back control of their technology.

Michael Titshall

VP, managing director, R/GA Australia

Sign in