The sale, announced Thursday, comes two days after Engage unveiled plans to sell its assets and. The company has filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the District of Massachusetts.
"We are pleased to announce the proposed asset sale," stated Engage in a statement. "We will continue to work throughout our Chapter 11 proceedings to maximize the interests of customers and suppliers, creditors and other parties in interest without compromising the quality of our products."
Engage's sale effectively ends the life of a once high-flying dot-com whose fortunes declined with the collapse of online advertising. The Andover, Mass.-based company once competed with DoubleClick as a Web advertising network, but eventuallyin November 2002 and turned its attention to becoming a provider of advertising, marketing and promotional solutions.
As part of the sale, Novato, Calif.-based Scene7 will assume between $650,000 and $850,000 of Engage's liabilities. The deal is expected to close this summer.
Engage plans to use cash collateral from its secured lender and former majority owner, Internet incubator company, to pay off its obligations. It has requested that the bankruptcy court allow it to continue compensation and benefits for its employees.