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After the bankruptcy of Sizmek last month, many ad-tech observers wondered what would happen to him. It turns out that a new owner is lined up.
Zeta Global announced Friday in court that it planned to acquire Sizmek for an amount between 33 and 36 million dollars. A source familiar with the situation said the price of the transaction was close to $ 40 million.
Sizmek, which provides advertisers with ad server technology, has struggled in the shadow of Google and as part of a chaotic acquisition of advertising firm specializing in advertising technologies, RocketFuel.
When he filed for bankruptcy protection in March, he owed millions to companies like OpenX, Index Exchange and PubMatic.
Zeta Global has already acquired a handful of ad-tech companies and raised $ 380 million.
David Steinberg, CEO of Zeta Global, said the company had started approaching Sizmek the day after his bankruptcy declaration. The acquisition is being reviewed by the court until the hearing on April 29th.
Zeta Global buys two parts of Sizmek's business: RocketFuel's demand-side platform that helps advertisers buy programmatic ads and a data management platform. Steinberg explained that the idea was to take Zeta Global's database of about 500 audiences used by advertisers for targeting and plugging them into RocketFuel, which would theoretically give agencies the chance to find them. access to quantities of first-party data enabling them to target campaigns free of charge.
He estimated that the agreement would reduce data costs for agencies by 20 to 25% because advertisers would not pay third parties for data, although the company does not cut access external data sources.
"This is the greatest opportunity we have ever made," he told Business Insider. "The other deals that we have concluded are more specialized – it is an opportunity for the blue ocean for Zeta.This is an opportunity to recover our data and change the way it works. of the programmatic ecosystem. "
As part of the deal, Sizmek's 200 employees will move to Zeta Global offices in New York, California and London.
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