Sizmek has agreed to sell its data management and demand-side platforms to Zeta Global in a deal that will see the latter pay up to $36 million for the assets. The proposed private sale was announced late on Friday afternoon.
If accepted as part of Sizmek’s Chapter 11 filing, Zeta Global, which has been on an acquisition spree over the course of the last two years, will pick up the ad-tech assets for $10 million in cash, $5 million in stock plus up to another $20 million on offer dependent on Sizmek’s debts.
The proposed transaction still has to be approved by bankruptcy courts, with Zeta Global asserting that the addition of Sizmek’s AI capabilities to its own will significantly bolster its own data cloud offering.
According to a release, approximately 200 Sizmek employees will be consolidated into Zeta Global’s operations in New York, Silicon Valley and in the U.K. should the offer be accepted. The company will maintain offices in Prague, Michigan and Connecticut in addition to Zeta’s current global offices. Sizmek will continue to operate its service for its users under existing terms.
Other aspects of Sizmek’s ad-tech offering are still up for sale, with its ad server and contextual advertising capabilities thought to be a highly prized asset for potential suitors.
In a letter Sizmek distributed among partners shortly after the announcement of the agreement, the company said, “To date, we have received numerous inbound inquiries and letters of intent from potential buyers. These letters of intent all vary in scope, with some focused on just the DSP/DMP business, just the ad server business, just for Peer 39 and–in certain cases–for the entire business.”
Sizmek filed for bankruptcy protection on March 29 and it has subsequently emerged that it owed up to $172 million to sell-side partners such as ad exchanges, etc. many of whom had suspended trading with Sizmek, with observers noting this may have prompted it to prioritize a proposed deal sell-off its DSP offering.
The company has since begun to cut overheads by laying off a sizable number of its U.S. headcount, the second such trimming of its workforce this year after a similar move in January which has prompted some of those affected to file a class action lawsuit.