Emily Tan
Jul 19, 2017

Sizmek to buy Rocket Fuel for $145 million

The transaction is expected to complete by the third quarter.

Mark Grether, executive chairman of Sizmek
Mark Grether, executive chairman of Sizmek

Private ad tech company Sizmek has announced plans to buy publicly listed programmatic company Rocket Fuel for $145 million.

Under the terms of the agreement, Sizmek, backed by Vector Capital, will commence a tender offer for all outstanding shares of Rocket Fuel common stock at $2.60 a share in cash, which including the assumption of Rocket Fuel's debts, values Rocket Fuel at around $145 million.

While both companies brand themselves differently, they are arguably both programmatic advertising ad tech providers. Sizmek provides advertisers with a platform to buy digital ads, optimise their ads and manage ad-targeting data. Rocket Fuel offers similar capabilities plus a predictive marketing platform which it claims is powered by artificial intelligence.

Collectively, Sizmek and Rocket Fuel claim to service more than 20,000 advertisers and 3,600 agencies to global audiences in over 70 countries.

"This is the next logical step in marketing automation–media optimisation and full creative optimisation combined, bringing together the context and the creative for the optimal consumer experience," Dr Mark Grether, executive chairman of Sizmek said regarding the deal.

When the deal is completed, Rocket Fuel will become a privately-held company. The transaction, which is expected to close in the third quarter of 2017, is conditioned upon satisfaction of a minimum tender offer condition, regulatory approvals and other customary closing conditions.

The Rocket Fuel board of directors unanimously approved the acquisition agreement.

Campaign is waiting to hear if Rocket Fuel will continue to be a separate company led by founder and chief executive Randy Wootton after the deal is completed.

Source:
Campaign UK

Related Articles

Just Published

1 day ago

Purpose, laughs, and boppable tunes: Spikes jury ...

SPIKES ASIA X CAMPAIGN: Presidents and members of several Spikes Asia juries share the top trends they spotted in the jury Zoom rooms, with video examples.

1 day ago

Crash Course: How to tell engaging short-form stories

To round off a week of creativity-themed content during Spikes Asia X Campaign festival, this Crash Course provides useful tips on how to build story arcs and create thumb-stopping campaigns for short-form.

1 day ago

Lessons from Tesla, Apple and yoga (yes, yoga) in ...

SPIKES ASIA X CAMPAIGN: Creatives need to drive relevance for sustainable options, instead of virtue-signalling about sustainability, argues Gulshan Singh of FCB Interface.

1 day ago

Spikes Asia Awards 2021: Campaign's contenders 3

As the juries make their final selections ahead of the March 1 winners announcement, Campaign Asia-Pacific's editorial team has once again scoured through the 2021 shortlist to pick out the work we expect to win.