By Milana Vinn

(Reuters) – Quotient Expertise (NYSE:) Inc, the guardian of Coupons.com, is exploring choices that embrace a sale of the corporate because it grapples with a collapse in promoting income, in response to folks accustomed to the matter.

The Salt Lake Metropolis, Utah-based firm, which has a market capitalization of about $320 million, is working with funding financial institution Houlihan Lokey (NYSE:) Inc on a sale course of that has been beneath method for a number of weeks, the sources mentioned.

There isn’t any certainty that Quotient (OTC:) will clinch any deal, added the sources, who requested anonymity as a result of the deliberations are confidential.

Quotient Expertise and Houlihan Lokey declined to remark.

Based within the early days of the web in 1998, Quotient operates Coupons.com and different digital advertising and marketing platforms providing promotions to customers. It’s centered on the U.S. grocery sector and has a few of the world’s greatest client firms as shoppers, representing greater than 2,500 manufacturers.

Quotient benefited from the COVID-19 pandemic lockdowns that drove many customers to on-line grocery purchasing. However the firm’s fortunes have reversed as its shoppers slashed promoting spending amid fears of an financial slowdown. Its shares have misplaced 80% of their worth since April 2021.

Quotient mentioned final month its income dropped from $521.5 million in 2021 to $288.8 million in 2022, whereas its internet operational loss widened from $45.6 million to $76.5 million.

The corporate secured a $55 million mortgage and a $50 million credit score line in December that helped it retire a $200 million convertible word. Quotient additionally just lately gave its chief monetary officer, Yuneeb Khan, new obligations as chief operational officer.

Final yr, Quotient averted a board problem from hedge fund Engaged Capital LLC by agreeing so as to add two administrators to its board. Engaged Capital was Quotient’s largest shareholder as of the top of December with an 8.4% stake, in response to the latest obtainable information.