Exclusive-Coupons.com owner Quotient Technology explores a sale -sources By Reuters

By Milana Vinn

(Reuters) – Quotient Technology (NYSE:) Inc, 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 (NYSE:) Inc on a sale process that has been under way for several weeks, the sources said.

There is no certainty that Quotient (OTC:) 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.