Sizmek to buy Rocket Fuel for $145 million

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The private ad tech company has announced plans to buy the publicly-listed programmatic business.

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 more than 70 countries.

"This is the next logical step in marketing automation–media optimisation and full creative optimization 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 complete, 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. 

This article originally appeared on Campaign UK.