Enters Asset Purchase Agreement with Existing Lenders
Commences Voluntary Chapter 11 Cases to Facilitate Efficient Sale; Expects to Complete Process in the Fourth Quarter of 2024
Secures Commitment of Approximately $122 Million in Debtor-in-Possession Financing
Continues to Serve Customers as Usual with Leading Technology-Enabled Digital Performance Advertising Solutions
CLEARWATER, Fla., Sept. 11, 2024 (GLOBE NEWSWIRE) -- Digital Media Solutions, Inc., ("DMS" or the "Company"), a leading provider of technology-enabled digital performance advertising solutions connecting consumers and advertisers, today announced it has entered into an asset purchase agreement (the "APA") with existing lenders (the "Lenders"), including a consortium of leading financial institutions. In addition, the Company has secured an approximately $122 million financing commitment from certain of the Lenders to facilitate voluntary Chapter 11 proceedings and execute a court-supervised sale process designed to maximize value, strengthen the business's financial foundation and position DMS for continued growth.
"DMS has a strong foundation and serves our expansive blue-chip client base across the insurance, e-commerce, education, home services and non-profit sectors through our differentiated performance marketing solutions," said Joe Marinucci, Co-Founder and CEO of DMS. "The steps we are taking are the result of the strategic review that the DMS Board of Directors initiated in April. We are now moving forward with the support of highly sophisticated investors, and we believe their commitments for new financing and the APA underscore their conviction in our business and the future of DMS. We are continuing our growth trajectory and are confident we will be an even stronger partner for our clients and vendors."
Mr. Marinucci continued, "We expect this to be an orderly and efficient process and, as we move through it, we remain committed to connecting advertisers with high-intent consumers. We appreciate the continued support of our customers, vendors and financial stakeholders. We also thank our employees for their continued hard work and dedication to innovating and serving our clients."
To facilitate the sale process, DMS today commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. The Company's ClickDealer subsidiaries are not part of the Chapter 11 proceedings, but they are included in the proposed sale to the Lenders. DMS is operating in the ordinary course across its businesses, including its ClickDealer subsidiaries, and continuing to provide innovative solutions, vertical expertise and outstanding support to its clients and vendors.
The Chapter 11 Proceedings
The court-supervised sale process will be conducted pursuant to section 363 of the U.S. Bankruptcy Code. Accordingly, the proposed transaction with the Lenders is subject to higher or otherwise better offers, Court approval and other customary conditions.
In connection with the ...
