Sizmek, the advertising technology company acquired by private-equity firm Vector Capital for $122 million in 2016, has filed for Chapter 11 bankruptcy. The buy-side advertising platform, today announced that it has initiated voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code to “preserve value and seek access to capital while the Company continues to review strategic alternatives”.
The company has undergone various changes over the years. It was company once known as Digital Generation (DG), which also owned MediaMind, which was at one point second to DoubleClick in the ad serving market and was regarded as a serious contender. DG was also a serious player in linear TV ad delivery, but the company sold those assets to its rival Extreme Reach for $485 million in August 2013 with a view to focusing on digital under the Sizmek brand.
Over the years Sizmek has made a number of notable ad tech acquisitions, including Peer39 (2012), StrikeAd (2015), PointRoll (2015) and Rocket Fuel (2017).
According to a statement:
“In the months preceding the filing, Sizmek has been in extended discussions with its stakeholders regarding their continued support of the Company as it pursued various strategic alternatives to address its over-leveraged balance sheet. Despite these ongoing discussions, the Company’s primary lender took control of the Company’s bank accounts and sought to divert customer receivables, thereby cutting off access to capital.”
It continued “As a result of this action, Sizmek’s Board of Directors unanimously determined that Chapter 11 protection is the only responsible mechanism by which the Company can seek access to capital and preserve value while it continues to explore value-maximizing alternatives. The Company is aggressively seeking to access its existing cash, and intends to fully resume normal-course operations as soon as possible.”