Sizmek requests approval of $36 million private sale of two platforms

By Caroline Salls

Pittsburgh, April 22 – Sizmek Inc. requested court approval to sell its demand side and data management platforms to Zeta Global Holdings Corp. through a private sale, according to a motion filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The company said the total sale price will be $33 million to $36 million, consisting of $10 million in cash payable on closing, $5 million in preferred equity and a share of the future collections on accounts receivable, specifically 50% of the first $10 million, 70% of the second $10 million and 60% of all remaining collections.

Although the platforms are being sold through a private transaction, Sizmek said it did agree to pay a $250,000 break-up fee and an up to $500,000 expense reimbursement to Zeta Global if it completes an alternate transaction.

A hearing is scheduled for April 29.

Sizmek is a New York-based independent buyside advertising platform. The company filed bankruptcy on March 29 under Chapter 11 case number 19-10971.

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