E-commerce giant Amazon confirmed the acquisition of Sizmek’s ad server and creative optimization divisions, strengthening its own offering against the might of Google.
After a couple of weeks of speculation, Amazon issued a statement on the 31st of May confirming its agreement to purchase the Ad Server and Dynamic Creative Optimisation (DCO) components of Sizmek’s business. The Ad Server will help Amazon place advertising across the Web, while DCO helps personalize display advertising based on data sets.
The news of this acquisition comes just two months after Sizmek filed for Chapter 11 bankruptcy protection, and a month after the business announced Zeta Group was buying its DMP and demand-side platform (DSP) capabilities in a deal worth $36 Million.
“Sizmek has been searching for a buyer for Sizmek Ad Server and Sizmek DCO, and we are both committed to continuing serving their customers at the high standards they’ve come to expect, Amazon said in the statement. “Once the deal closes, Sizmek Ad Server and Sizmek DCO will operate separately from Amazon Advertising for the time being. We look forward to working with the team, and we’ll share more updates as we invent and create new opportunities to better serve our advertisers over time.” Amazon also noted that Sizmek and Amazon Advertising had many mutual customers, which indicated how valuable the solutions were to its customer base.
This move comes on the heels of Amazon’s attempts to ramp up its own advertising offering, launching services officially in Australia this April. Per reports, this deal gives Amazon the second-largest ad server footprint in the market – just behind Google.
In a separate statement, Sizmek thanked customers for their patience as it sought to find a home for its solutions. “Becoming a part of Amazon allows Sizmek Ad Server and Sizmek DCO to continue serving you at high standards,” the company stated on its website. “Sizmek and Amazon have many mutual customers, so Amazon already knows how valued these solutions are and is invested in the long-term success of Sizmek Ad Server and Sizmek DCO.”
Financial terms of the deal have not been disclosed yet.
