Digital Media Solutions Inc. Goes Up for Sale but Whats Actually Happening

Digital Media Solutions, Inc. (DMS), a leading provider of technology-enabled digital performance advertising solutions, has entered into an asset purchase agreement (APA) with existing lenders, including a consortium of leading financial institutions.

This move marks the beginning of a new chapter for the company, as it commences voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. The goal of this process is to facilitate an efficient sale and maximize value, strengthening the business's financial foundation and positioning DMS for continued growth.

According to Joe Marinucci, Co-Founder and CEO of DMS, the company has a strong foundation and serves a diverse range of clients across various sectors, including insurance, e-commerce, education, home services, and non-profit. The steps being taken are the result of a strategic review initiated by the DMS Board of Directors in April.

Under the APA, the Lenders have committed to provide approximately $122 million in debtor-in-possession financing to support the company's operations during the sale process. This financing will enable DMS to continue serving its customers as usual, without interruption.

The proposed sale to the Lenders is subject to higher or otherwise better offers, Court approval, and other customary conditions. The court-supervised sale process will be conducted pursuant to section 363 of the U.S. Bankruptcy Code.

It's worth noting that the ClickDealer subsidiaries are not part of the Chapter 11 proceedings but 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 sale process is expected to be completed in the fourth quarter of 2024. While this news may raise concerns, the company is confident that this move will ultimately benefit its customers, vendors, and financial stakeholders.

Marinucci expressed his appreciation for the continued support of customers, vendors, and financial stakeholders. He also thanked the company's employees for their hard work and dedication to innovating and serving clients.