Symon Communications announced at the end of last week that it was merging with SCG Financial Acquisition Corp., described as a special purpose acquisition company. SCG had already announced the same with Reach Media Group, aka RMG Networks.
“We are excited about the combination of Symon Communications with RMG Networks,” says Gregory H. Sachs, SCG’s Chairman, Chief Executive Officer and President. “This is a key milestone in creating a global leader in intelligent visual communications.”
The boards of directors of SCG and Symon Communications have each approved the proposed transaction. Completion of the transaction is expected late in the first quarter or early in the second quarter of 2013 following SCG’s acquisition of RMG Networks, which is a condition to the consummation of the acquisition of Symon Communications.
Upon completion of the transaction, Symon Communications will be combined under SCG with RMG Networks creating a comprehensive platform for providing end-to-end intelligent visual communications solutions. The combined company will be re-branded under the RMG Networks name.
Current Symon Communications CEO Charles Ansley will stick around to run the Symon Enterprise Solutions business unit. “The Symon team is looking forward to our combined future with RMG Networks, and we believe the resulting company will be able to provide even more powerful and extensive solutions to our customers globally.”
He will report up to RMG CEO Garry McGuire, who will be CEO of the combined companies. “Symon Communications is a revered member of the digital signage industry and has been providing signage products for decades. Joining forces with Symon will create a comprehensive platform for end-to-end intelligent visual solutions for our customers.”
I most definitely don’t have an MBA, so the machinations of this somewhat escape me. But what’s been explained to me is that the seemingly odd marriage of Symon – which does NOT do Digital OOH networks and focuses on corporate communications – with RMG, which focuses on Digital OOH, makes some sense when you are going public and want share values going north.
SCG is already listed on NASDAQ and it is likely that in the next six to eight weeks it will change names to RMG, or something like that.