The SEC filings show, in the transaction details of this deck, that Symon’s owners (primarily the VC firm Golden Gate Capital) got a “cash consideration” of $45M – which I guess in plain English means check. Another $23.5 million was used to pay of the debt built up by RMG.
The financials show RMG lost an estimated $11.5 million in 2012, while Symon’s net income was $3.7 million. With a target stock value of $10/share, Symon’s balance sheet makes the new company much more attractive than the wobbly financials of media-driven RMG, which lost a pretty big chunk of change last year.
However, in EBITDA accounting – stuff that just sends me into rapid blink mode – RMG was EBITDA-positive last year to the tune of $2.9 million.
The new company will be based, at least technically, in Dallas (where Symon is). My guess is the RMG media people will stay in SF Bay and New York.
The recent deal that saw RMG take on the Akoo mall network makes more sense now, as a guy named Donald Wilson has millions allocated in this deal, and also had millions into Akoo.
Garry McGuire will be the CEO of the blended business and Charles Ansley will be president of the Symon business unit.