Digital Media Solutions, Inc. Reaches Agreement to Transition Ownership to Existing Lenders, Positioning Business for Continued Innovation and Growth
Digital Media Solutions (DMS) has entered an asset purchase agreement with existing lenders and commenced voluntary Chapter 11 proceedings to facilitate a court-supervised sale process. The company secured a $122 million financing commitment to support operations during this transition. DMS aims to strengthen its financial foundation and position itself for continued growth.
Key points:
- DMS will continue normal operations, serving customers with its digital performance advertising solutions
- The process is expected to complete in Q4 2024
- ClickDealer subsidiaries are included in the proposed sale but not in Chapter 11 proceedings
- The company intends to pay vendors and suppliers in full under normal terms for post-filing services
Digital Media Solutions (DMS) ha firmato un accordo di acquisto di asset con i finanziatori esistenti e ha avviato procedimenti volontari ai sensi del Capitolo 11 per facilitare un processo di vendita supervisionato dal tribunale. L'azienda ha assicurato un impegno di finanziamento di 122 milioni di dollari per supportare le operazioni durante questa transizione. DMS mira a rafforzare la sua base finanziaria e posizionarsi per una crescita continua.
Punti chiave:
- DMS continuerà le operazioni normali, servendo i clienti con le sue soluzioni di advertising digitale ad alte prestazioni
- Si prevede che il processo si completi nel Q4 2024
- Le filiali di ClickDealer sono incluse nella vendita proposta ma non nei procedimenti del Capitolo 11
- L'azienda intende pagare fornitori e venditori integralmente secondo i termini normali per i servizi successivi alla registrazione
Digital Media Solutions (DMS) ha firmado un acuerdo de compra de activos con los prestamistas existentes y ha iniciado procedimientos voluntarios bajo el Capítulo 11 para facilitar un proceso de venta supervisado por el tribunal. La compañía ha asegurado un compromiso de financiamiento de 122 millones de dólares para apoyar las operaciones durante esta transición. DMS busca fortalecer su base financiera y posicionarse para un crecimiento continuo.
Puntos clave:
- DMS continuará operaciones normales, atendiendo a los clientes con sus soluciones de publicidad digital de alto rendimiento
- Se espera que el proceso se complete en el cuarto trimestre de 2024
- Las subsidiarias de ClickDealer están incluidas en la venta propuesta pero no en los procedimientos de Capítulo 11
- La empresa tiene la intención de pagar a proveedores y vendedores en su totalidad bajo los términos normales para los servicios posteriores a la presentación
디지털 미디어 솔루션즈(DMS)는 기존 대출자와 자산 매입 계약을 체결하고 법원에서 감독하는 판매 프로세스를 용이하게 하기 위해 자발적 제11장 절차를 시작했습니다. 이 회사는 전환 기간 동안 운영 지원을 위해 1억2200만 달러의 금융 약속을 확보했습니다. DMS는 재무 기반을 강화하고 지속적인 성장을 위해 입지를 다지기를 목표로 하고 있습니다.
핵심 사항:
- DMS는 정상적으로 운영을 계속하며 고객에게 디지털 성과 광고 솔루션을 제공합니다
- 프로세스는 2024년 4분기 기준으로 완료될 것으로 예상됩니다
- ClickDealer 자회사는 제안된 판매에 포함되지만 제11장 절차에는 포함되지 않습니다
- 회사는 파일링 후 서비스에 대해 정상적인 조건으로 공급업체 및 판매자에게 전액 지불할 계획입니다
Digital Media Solutions (DMS) a signé un accord d'achat d'actifs avec les prêteurs existants et a entamé des procédures volontaires sous le Chapitre 11 pour faciliter un processus de vente supervisé par le tribunal. L'entreprise a sécurisé un engagement de financement de 122 millions de dollars pour soutenir les opérations durant cette transition. DMS vise à renforcer sa base financière et à se positionner pour une croissance continue.
Points clés :
- DMS continuera ses opérations normales, servant les clients avec ses solutions de publicité numérique performante
- Le processus devrait se terminer au quatrième trimestre 2024
- Les filiales de ClickDealer sont incluses dans la vente proposée mais pas dans les procédures du Chapitre 11
- L'entreprise prévoit de payer entièrement les fournisseurs et les vendeurs selon des conditions normales pour les services post-dépôt
Digital Media Solutions (DMS) hat eine Vereinbarung über den Erwerb von Vermögenswerten mit bestehenden Kreditgebern getroffen und freiwillige Verfahren gemäß Kapitel 11 eingeleitet, um einen gerichtlich überwachten Verkaufsprozess zu ermöglichen. Das Unternehmen hat ein Finanzierungsengagement über 122 Millionen Dollar gesichert, um die Betriebsabläufe während dieses Übergangs zu unterstützen. DMS zielt darauf ab, seine finanzielle Basis zu stärken und sich für weiteres Wachstum zu positionieren.
Wichtige Punkte:
- DMS wird den normalen Betrieb fortsetzen und Kunden mit seinen digitalen Leistungswerbelösungen bedienen
- Der Prozess wird voraussichtlich im 4. Quartal 2024 abgeschlossen sein
- Die Tochtergesellschaften von ClickDealer sind in den vorgeschlagenen Verkauf einbezogen, jedoch nicht in die Verfahren des Kapitels 11
- Das Unternehmen beabsichtigt, Lieferanten und Dienstleistern nach der Eintragung zu den normalen Bedingungen vollständig zu bezahlen
- Secured $122 million in debtor-in-possession financing to support operations
- Continuing normal business operations during the transition
- Asset purchase agreement with existing lenders indicates investor confidence
- Potential for stronger financial foundation post-restructuring
- Voluntary Chapter 11 bankruptcy filing
- Potential change in ownership structure
- Uncertainty surrounding the outcome of the court-supervised sale process
- Possible impact on shareholder value due to restructuring
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
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
“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 Chapter 11 proceedings, DMS has received a commitment for approximately
The Company has filed a number of customary motions seeking Court authorization to continue to support its business operations during the court-supervised sale process, including authority to continue payment of employee and contractor wages and benefits. The Company expects to receive Court approval for these requests and, accordingly, anticipates continuing its ordinary course operations. The Company also intends to pay vendors and suppliers in full under normal terms for services contracted for on or after the filing date.
Additional Information
Additional information is available at AdvancingDMS.com. Court filings and other information related to the sale process are available on a separate website administered by the Company’s claims agent, Omni Agent Solutions, at https://omniagentsolutions.com/DMS; by calling Omni representatives toll-free at (866) 680-8083, or (818) 574-6886 for calls originating outside of the U.S. or Canada; or by emailing DMSInquiries@OmniAgnt.com.
Advisors
Kirkland & Ellis LLP and Porter Hedges LLP are serving as legal counsel to DMS, Portage Point Partners is serving as restructuring advisor and Houlihan Lokey Capital, Inc. is serving as investment banker.
About DMS
Digital Media Solutions, Inc. (DMS) drives better business results by connecting high-intent consumers with advertisers across our core verticals: Insurance (auto, home, health), Education and Consumer/E-Commerce. Our innovative solutions help consumers shop and save, while helping our advertisers achieve above average return on ad spend. Learn more at https://digitalmediasolutions.com.
Forward-Looking Statements
This press release contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company and its subsidiaries and certain plans and objectives with respect thereto. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as “initiate,” “anticipate,” “target,” “expect,” “enable,” “estimate,” “intend,” “plan,” “goal,” “believe,” “hope,” “aims,” “continue,” “will,” “may,” “should,” “would,” “could” or other words of similar meaning. These statements are based on assumptions and assessments made by the Company and its perception of historical trends, current conditions, future developments and other factors. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this press release could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements, including related to any sale process and the Chapter 11 process. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this press release. The Company does not assume any obligation to update or correct the information contained in this press release (whether as a result of new information, future events or otherwise), except as may be required by applicable law.
There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market, supply chain and regulatory forces, future exchange and interest rates, changes in tax rates and any future business combinations or dispositions, our ability to negotiate and confirm a sale of substantially all of our assets under Section 363 of the Bankruptcy Code (or any other plan of reorganization), uncertainties and costs related to the completion of any sale process (implemented through the Chapter 11 process) and the Chapter 11 process more generally, including, among others, potential adverse effects of the Chapter 11 process on the Company’s liquidity and results of operations, including with respect to its relationships with its customers, vendors and partners, suppliers and other third parties; employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties inherent in the Chapter 11 process; the impact of any cost reduction initiatives; any other legal or regulatory proceedings; the Company’s ability to obtain operating capital, including complying with the restrictions imposed by the terms and conditions of any debtor-in-possession financing, such as the financing mentioned herein; the length of time that the Company will operate under Chapter 11 protection; the timing of any emergence from the Chapter 11 process; and the risk that any plan of reorganization resulting therefrom may not be confirmed or implemented at all. Please see the plan of reorganization and related disclosure statement (as may be amended, modified or supplemented) that may be filed with the Court for additional considerations and risk factors associated with the Company’s Chapter 11 process.
Nothing in this press release is intended as a profit forecast or estimate for any period and no statement in this press release should be interpreted to mean that the financial performance for the Company, including after the completion of any sale process, for the current or future financial years would necessarily match or exceed its historical results.
Further, this press release is not intended to and does not constitute and should not be construed as, considered a part of, or relied on in connection with any information or offering memorandum, security purchase agreement, or offer, invitation or recommendation to underwrite, buy, subscribe for, otherwise acquire, or sell any securities or other financial instruments or interests or any other transaction.
Contacts
Investor Relations
Media
Aaron Palash / Aura Reinhard / Maeve Barbour / Jenna Shinderman
Joele Frank Wilkinson Brimmer Katcher
212-355-4449
FAQ
What is the main reason for Digital Media Solutions (DMSL) filing for Chapter 11?
How much debtor-in-possession financing has Digital Media Solutions (DMSL) secured?
When does Digital Media Solutions (DMSL) expect to complete its Chapter 11 process?
Will Digital Media Solutions (DMSL) continue normal business operations during the Chapter 11 process?
Are Digital Media Solutions' (DMSL) ClickDealer subsidiaries included in the Chapter 11 proceedings?
