Sizmek, a multichannel ad tech company, today announced that it is to be acquired by Vector Capita, a technology-focused private equity firm, for $122 million. Vector Capital is a San Francisco-based private equity firm that ‘partners with management teams to transform and grow technology businesses’. The company say that over its history Vector has invested $1.6 billion in more than 40 technology companies, including in the advertising technology space – including audio ad tech company, Triton Digital.
“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.”
“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.”
Vector will commence offer to purchase all of the outstanding shares of Sizmek common stock for $3.90 per share in cash. The purchase price represents a 65 percent premium to Sizmek’s 30-day volume weighted average trading price of $2.36 on August 2, 2016. Once the deal is complete, Sizmek will become a privately-held company.