Digital Media Solutions, Inc. completed the acquisition of HomeQuote from Customer Direct Group.
March 29, 2023
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Digital Media Solutions, Inc. (NYSE:DMS) entered into an agreement to acquire HomeQuote from Customer Direct Group for $45 million on March 6, 2023. The consideration paid for the acquisition at closing will be $35 million. Performance in the two years following closing could result in up to $10 million of additional contingent consideration being paid. The contingent consideration may be paid in cash or the Company?s Class A Common Stock, to be mutually agreed by DMS and the applicable recipients. Completion of the transaction is subject to certain closing conditions, the satisfaction or waiver of which is necessary for the transaction to be consummated.
Digital Media Solutions, Inc. (NYSE:DMS) completed the acquisition of HomeQuote from Customer Direct Group on March 30, 2023. Digital Media Solutions, Inc. acquired the HomeQuote.io home services marketplace from Customer Direct Group, along with the supporting media and technology assets of the ClickDealer international ad network. Alyona Furda and Viacheslav Yakymchuk of Baker & McKenzie LLP acted as legal advisor to DMS. Digital Media Solutions paid cash consideration of $31.8 million upon closing of the transaction, with an additional $3.5 million in holdbacks, subject to certain criteria. On July 3, 2023, after the successful completion of the first tranche in criteria was met, $1.0 million of the holdback was paid to the Sellers in cash. The transaction also included up to $10.0 million in contingent consideration, subject to the achievement of certain revenue and net margin based milestones in two subsequent one-year measurement periods, payable in cash or, if mutually agreed to by the Company and the Seller, in Class A Common Stock. The Estimated Net Working Capital adjustment upon closing was $0.3 million. The Final Net Working Capital adjustment was $0.6 million. On August 22, 2023 the Post-closing Net Working Capital adjustment amount together with $0.5 million of the holdback was paid to the Sellers in cash. The remaining holdback of $2.0 million is expected to be released within 24 months of the closing date, subject to certain criteria.
Digital Media Solutions, Inc. is a provider of technology-enabled digital performance advertising solutions connecting consumers and advertisers. It operates through three segments: Brand Direct, Marketplace and Technology Solutions. The Brand Direct segment consists of services delivered against its customerâs brand. In servicing its customers under this segment, the end consumer of its customer interacts directly with its customer and does not interface with the Companyâs brands. The Marketplace segment includes services delivered directly against the DMS brand. In the Technology Solutions segment, services offered by the Company include software services and digital media services that are managed on behalf of the customer. It connects consumers with advertisers across its core verticals, such as Insurance (auto, home, health), education and consumer/e-commerce. Its solutions help consumers shop and save, while helping its advertisers achieve above average return on ad spend.
DIGITAL MEDIA SOLUTIONS, INC. 
