Sizmek to Acquire Rocket Fuel for $125.5M

SismekSizmek, an advertising technology company owned by PE firm Vector Capital, is to acquire Rocket Fuel a technology company that offers a Predictive Marketing Platform designed to help marketers & their agencies connect with consumers through digital media, for $125.5 million, or $2.60 per share in cash, valuing Rocket Fuel at approximately $145 million. Rocket Fuel trades on the NASDAQ Global Select Market under the ticker symbol “FUEL.

“The acquisition of Rocket Fuel brings omni-channel creativity and AI-enabled decisioning together under one roof, providing our clients with a self-service predictive marketing platform that optimizes campaigns across the entire media plan,” said Dr. Mark Grether, Executive Chairman of Sizmek.

Collectively, Sizmek and Rocket Fuel service more than 20,000 advertisers and 3,600 agencies to global audiences in over 70 countries.

Rocket Fuel Inc revenues fell 1.16% in FY 2016 compared to FY 2015 to 456.26m. It made net losses of $66 million, compared to a loss of $211 million in 2015. Rocket Fuel’s net loss, adjusted for depreciation and amortisation, is expected to be between $4 million and $3 million in the second quarter of this year.

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