Ad management platform Sizmek has been acquired by private equity firm Vector Capital for approximately $122m (£91.5m) in cash.
The deal, expected to close in Q4, will see Sizmek become a privately-held company.
“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.”
The price is based on $3.90 for all outstanding shares of Sizmek stock, up two-thirds on its average trading price of $2.36 for the past month.
According to shareholder rights law firm Tripp Levy, however, this deal "unfairly under-values the true going forward inherent value of Sizmek and that shareholders may not be receiving the maximum value for their shares". The law firm says it will be investigating the sale, to "determine whether the Sizmek senior management is entering into this deal for its' own self-interests to the detriment of the company's shareholders".
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