Digital Media Solutions Stock Slides As Prism Withdraws Takeover Offer; Knocks Off 14% Workforce

Digital Media Solutions, Inc's DMS Board completed its review to evaluate potential strategic alternatives to maximize shareholder value.
The Board has unanimously determined to continue executing the company's strategic plan as an independent, public company.
On Mar. 3, 2023, Prism Data, LLC notified the company that it withdrew the Sept. 8 proposal to snap the company at $2.50 per share.
DMS implemented a restructuring plan to create efficiency, save costs and strategically target areas with growth potential.
With the business consolidation into DMS core service offerings, the restructuring resulted in a 14% reduction in the DMS workforce.
DMS agreed to acquire the HomeQuote.io home services marketplace from Customer Direct Group and the supporting media and technology assets of the ClickDealer international ad network for $35 million.
The acquisition will allow DMS to continue the expansion of its marketplace solutions into home services in the U.S. market while strengthening its brand direct business through international development.
Performance in the two years following closing could result in up to $10 million in additional contingent consideration.
The acquisition will likely add $70 million – $80 million to DMS FY2023 revenue and be accretive to DMS FY2023 earnings.
DMS held $18.3 million in cash and equivalents as of Sept. 30.
Price Action: DMS shares traded lower by 18.18% at $0.90 on the last check Monday.