Coupons.com owner Quotient Technology explores a sale -sources

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07/03/2023 14:40

By Milana Vinn
       March 7 (Reuters) - Quotient Technology Inc  QUOT.N ,
the parent of Coupons.com, is exploring options that include a
sale of the company as it grapples with a collapse in
advertising revenue, according to people familiar with the
matter.
    The Salt Lake City, Utah-based company, which has a market
capitalization of about $320 million, is working with investment
bank Houlihan Lokey Inc  HLI.N  on a sale process that has been
under way for several weeks, the sources said.
    There is no certainty that Quotient will clinch any deal,
added the sources, who requested anonymity because the
deliberations are confidential.
    Quotient Technology and Houlihan Lokey declined to comment.
    Founded in the early days of the internet in 1998, Quotient
operates Coupons.com and other digital marketing platforms
offering promotions to consumers. It is focused on the U.S.
grocery sector and has some of the world's biggest consumer
companies as clients, representing more than 2,500 brands.
    Quotient benefited from the COVID-19 pandemic lockdowns that
drove many consumers to online grocery shopping. But the
company's fortunes have reversed as its clients slashed
advertising spending amid fears of an economic slowdown. Its
shares have lost 80% of their value since April 2021.
    Quotient said last month its revenue dropped from $521.5
million in 2021 to $288.8 million in 2022, while its net
operational loss widened from $45.6 million to $76.5 million.
    The company secured a $55 million loan and a $50 million
credit line in December that helped it retire a $200 million
convertible note. Quotient also recently gave its chief
financial officer, Yuneeb Khan, new responsibilities as chief
operational officer.
    Last year, Quotient avoided a board challenge from hedge
fund Engaged Capital LLC by agreeing to add two directors to its
board. Engaged Capital was Quotient's largest shareholder as of
the end of December with an 8.4% stake, according to the most
recent available data.

 (Reporting by Milana Vinn in New York
Editing by Matthew Lewis)
 ((Milana.Vinn@thomsonreuters.com;))