In an ongoing sign of consolidation in the adtech sector, Sizmek has today (July 18) announced it has agreed to acquire publicly listed outfit Rocket Fuel in a deal tipped to be worth $145m.
A press release announcing the agreement states that Rocket Fuel’s board of directors has unanimously approved the proposal, with an affiliate of Sizmek (the company is an affiliate of Vector Capital) set to offer cash for all of the outstanding shares of Rocket Fuel’s common stock at $2.60 per share.
Under the terms of the merger agreement, Rocket Fuel has a go-shop right to solicit third party alternative acquisition proposals for the next 30 days, but the parties expect the proposed deal to be completed by the third quarter of 2017.
The announcement comes the same day Rocket Fuel announced unaudited financial results for the three months to June 30, with the publicly listed company forecasting a 36% net revenue decline year-over-year coming in at somewhere in the region of $42m-$43m.
Needham & Company, LLC is serving as financial advisor to Rocket Fuel, with Wilson Sonsini Goodrich & Rosati, Professional Corporation is acting as Rocket Fuel’s legal advisor. Kirkland & Ellis LLP is acting as Sizmek’s legal advisor.
The announcement comes a wider trend for mergers and acquisitions in the adtech sector, with Rubicon Project yesterday announcing it has purchase nToggle in a transaction worth $38.5m.
More to follow