Sizmek taken over by Vector Capital in all-cash deal worth $3.90 per-share prompting law firm investigation

Vector Capital has snapped up Sizmek / Sizmek Vector Acquisition

Ad tech firm Sizmek has been snapped up by tech-focused private equity firm Vector Capital.

The acquisition will see Vector Capital take control of Sizmek by the end of the year in an all-cash tender deal worth $3.90 per share.

Sizmek’s president and chief executive officer, Neil Nguyen, said the move would provide the company with the “resources and flexibility” to execute its long-term growth strategy.

“We are excited to partner with Vector and believe this transaction benefits our customers, employees, partners and shareholders,” he added.

However, shareholder rights law firm Tripp Levvy has announced that it is investigating the agreement because it has determined that the offer price per-share "unfairly under-values the true going forward inherent value of Sizmek."

In a statement published online, the law firm said the investigation will seek to determine whether Sizmek's senior management is "entering into this deal for its' own self-interests to the detriment of the Company's shareholders."

Founded in 1997 Vector Capital partners with management teams to help grow tech businesses, it has invested $1.6bn into tech firms – including those in the ad tech arena. Last year it bought end-to-end software vendor Triton Digital for an undisclosed sum.

“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.”

Sizmek unveiled its results for the second quarter of the year today (3 August) noting a revenue increase of 22 per cent to $48.9m, and income from programmatic noting a jump of 138 per cent.

Earlier this year, the ad tech firm launched a new data centre in Frankfurt to add to its dedicated offices in Amsterdam and the Netherlands.

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