Digital advertising company Sizmek has agreed to be acquired by San Francisco private equity firm Vector Capital in a deal valued at about $122 million.
Sizmek moved its headquarters from Dallas to Austin in 2014, drawn by the mix of startups and more established tech companies. In Austin, the company's operations include client service operations, sales, accounting and technology development and support.
Sizmek carries out digital ad campaigns for advertisers and agencies around the world. The company said it has about 1,000 employees in 65 countries, and works with more than 3,700 ad agencies and 19,000 brand advertisers.
"We believe this transaction provides Sizmek with the resources and flexibility to execute upon our long term strategy of becoming the leading independent, global ad management platform," Neil Nguyen, Sizmek CEO, said in a written statement.
Under the deal, Vector will acquire all outstanding shares of Sizmek common stock for $3.90 a share in an all-cash offer. The purchase price represents a 65 percent premium to Sizmek's 30-day average trading price of $2.36 as of Aug. 2.
When the deal is completed, Sizmek will become a privately held company, executives said.
Alex Beregovsky, managing director at Vector Capital, said: "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 on Wednesday also released its financial report for the second quarter. The company posted a net loss of 4 cents per share on $48.9 million in revenue. Thomson Reuters consensus estimates had called for a net loss of 14 cents per share on $44.8 million.
During the second quarter a year ago, Sizmek reported a net loss of 27 cents per share on revenue of $40.22 million.
Shares of Sizmek were at $3.86, up $1.20, or 45 percent, in Wednesday afternoon trading.