RMG Networks Merger Puts Digital OOH Network On Path To Going Public
January 18, 2013 by Dave Haynes
Reach Media Group Holdings, Inc. (aka RMG Networks) has done a merger agreement with a venture capital firm that will enable the Digital OOH company to go public this year.
The deal is with SCG Financial Acquisition Corp, which has listings on NASDAQ and two over the counter exchanges, and does these sorts of special purpose acquisitions.
The news release says RMG Networks will retain its management team, continue its travel-focused network and media sales efforts, and expand into new lines of business. The company is dominant in the air travel space, with screens in lounges and on 1,000s of seat-back TVs on passenger jets.
“This is a very exciting time for RMG, for our employees, for our customers and our business partners,” says CEO Garry McGuire. “As a public company with access to the capital markets, RMG will be able to accelerate our rate of growth.”
“RMG is a leader in the digital signage space and the resulting company will be well-positioned to lead the growth and development of this market,” says Gregory H. Sachs, who runs SCG. “RMG’s track record for technology development and digital out-of-home media sales offers our shareholders an attractive opportunity for value creation from both organic growth and sector acquisitions. We look forward to working with RMG in this emerging industry segment.”
The boards of directors of SCG and RMG Networks have approved the and it should be completed within this quarter.
The deal came to light about a month ago as part of an announcement about SCG acquiring Symon Communications. The connective tissue between a content management software company that expressly focuses on digital signage in corporate and manufacturing/production environments, and a media sales company that already has a big software development team in China, is a little hard to figure out. However, McGuire is anything but stupid.
One thing that doesn’t seem to be happening anymore is the DirecTV deal announced a year ago. The MessageBoard offer is either well-hidden or gone from the company’s site. Have asked RMG, but no response yet.