Digital Media Solutions Takes Strategic Steps for Future Growth

Digital Media Solutions Takes Strategic Steps for Future Growth

In an evolving landscape of digital advertising, Digital Media Solutions, Inc. (DMS), a key player in technology-driven performance marketing, has taken significant steps to ensure its future success and innovation. The company has reached an agreement with its existing lenders to facilitate a seamless transition in ownership through a specialized asset purchase agreement. This decision follows a thorough strategic review initiated by its Board of Directors to navigate the evolving market challenges and position the company effectively for the future.

Asset Purchase Agreement and Financial Backing

Recently, DMS announced its asset purchase agreement (APA) with a consortium of established lenders, which underscores the confidence the financial community has in the company’s future. Alongside this agreement, the company has secured a commitment for approximately $122 million in debtor-in-possession (DIP) financing. This financial backing is instrumental as the company embarks on its voluntary Chapter 11 proceedings aimed at maximizing value and reinforcing its financial stability.

Continuing Operations Amid Chapter 11 Processes

While most companies face challenges during a transition like this, DMS is committed to maintaining smooth operations throughout the Chapter 11 process. The company reassures its customers that services will proceed without interruption. By leveraging its advanced digital performance advertising technologies, DMS aims to enhance their service delivery for existing clients, allowing them to connect meaningfully with high-intent consumers.

Leadership Insights on Strategic Decisions

Joe Marinucci, Co-Founder and CEO of DMS, remarked on the positive future he envisions for the company. According to him, the new financing and the APA highlight strong investor confidence and reflect their commitment to the business. DMS continues its dedication to providing exceptional performance marketing solutions that serve a diverse portfolio of sectors, including insurance, e-commerce, education, and non-profit organizations.

Valuing Customer Relationships and Employee Commitment

Marinucci emphasized the importance of customer relationships and taking steps to ensure continuity and support during this transition. He thanked the employees for their hard work and encouraged open communication as the company moves forward. This collaborative spirit is essential as DMS navigates through the Chapter 11 process, aiming to emerge as an even stronger entity.

The Chapter 11 Proceedings and Sale Process

The court-supervised sale process under Chapter 11 is designed to uphold DMS’s business integrity while attracting better offers from potential buyers. The transaction requires court approval and is contingent on securing the best possible outcomes for stakeholders. It combines both new commitments and a roll-up of pre-petition funded debt, thereby streamlining operational needs during this critical period.

Commitment to Business Operations

During this period, DMS will file motions to receive court authorization to maintain business operations as usual. This includes the timely payment of employees and vendor services. The strategic plan aims to uphold and improve client relationships while ensuring operational continuity.

Ongoing Support and Future Outlook

As part of its restructuring efforts, DMS asserts that information related to the sale process and its Chapter 11 filings will be readily accessible to stakeholders and the public. The company’s proactive communication strategy reinforces a commitment to transparency throughout the proceedings.

About Digital Media Solutions

Digital Media Solutions, Inc. (DMS) specializes in driving impactful results for advertisers by connecting them with high-intent consumers across pivotal sectors. Its innovative approach allows clients to achieve superior returns on advertising spend, making DMS a vital partner in the dynamic marketplace of digital advertising.

Frequently Asked Questions

What is the reason behind DMS's Chapter 11 filing?

DMS aims to maximize the business's value and strengthen financial foundations through a court-supervised sale process following its APA.

How much financing has DMS secured?

The company has secured approximately $122 million in debtor-in-possession financing to support its operations during Chapter 11 proceedings.

Will DMS continue to serve its customers during the transition?

Yes, DMS is committed to providing seamless service to its customers, ensuring that operations continue as usual throughout the transition.

What are some sectors served by DMS?

DMS provides digital advertising solutions across areas such as insurance, e-commerce, education, and non-profit sectors.

Who are the legal and financial advisors to DMS?

Kirkland & Ellis LLP and Porter Hedges LLP are serving as legal counsel, while Portage Point Partners and Houlihan Lokey Capital, Inc. are advising on restructuring and financing aspects, respectively.

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