Ad Platform Sizmek Enters Chapter 11

MRC-accredited buy-side advertising platform Sizmek has initiated voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code, as it looks for capital and reviews options to cope with debt.

Sizmek, described as the world's largest independent buy-side advertising platform, integrates data, creative and media in the pursuit of optimal campaign performance, using AI to find 'robust insights' and help clients bring together their media plans in one place. The firm has been a pioneer in building MRC (Media Rating Council) accredited solutions for digital measurement, with its viewable impression verification metric awarded in 2014 and a string of further successful audits since. In December, it received accreditation for its new ad server, covering impressions across display, video, mobile, web and mobile in-app. Over the past two years, it has partnered with the likes of DoubleVerify, comScore and Integral Ad Science, and acquired predictive marketing software company Rocket Fuel for approximately $145m.

The company, whose CEO is Mark Grether (pictured), now cites an 'over-leveraged balance sheet' and says over the past few months it has been 'in extended discussions with its stakeholders' regarding their continued support, but says despite this its primary lender has 'taken control of its bank accounts and sought to divert customer receivables, thereby cutting off access to capital'. As a result the Board of Directors has 'unanimously determined that Chapter 11 protection is the only responsible mechanism by which the Company can seek access to capital and preserve value while it continues to explore value-maximizing alternatives'. It adds: 'The Company is aggressively seeking to access its existing cash, and intends to fully resume normal-course operations as soon as possible'.

The case, filed in the U.S. Bankruptcy Court for the Southern District of New York, includes subsidiaries Sizmek Inc.; Sizmek DSP, Inc.; Sizmek Technologies, Inc.; Wireless Artist LLC; WirelessDeveloper, Inc.; X Plus One Solutions, Inc.; X Plus Two Solutions, LLC; and Point Roll, Inc.

Web site: www.sizmek.com .