The reverse merger thing that has led in the last few weeks to RMG Networks being a listed company took another big step with the closing Friday of the acquisition of digital signage software firm Symon Communications.
RMG Networks, which has primarily been in the business of selling Digital OOH advertising, is now touting in a news release a “complete end-to-end solutions providing hardware, software, professional services and monetization management for both advertising and non-advertising digital signage customers.”
This transaction follows the recently completed business combination of Reach Media Group Holdings, Inc. and SCG Financial Acquisition Corp.
“The acquisition of Symon creates a digital signage solutions powerhouse with what we believe are financial strengths and technological capabilities unlike any other in the industry,” says Gregory H. Sachs, Executive Chairman of RMG Networks. “This is a fast-moving time for the digital signage industry, and this combination positions us to lead when demand is growing. This is an important step for us as we continue to seek opportunities to expand our business through organic growth, acquisition and technological innovation.”
“Businesses are rapidly adopting intelligent digital signage as a smart, memorable way to reach and engage customers, motivate their employees and visualize massive amounts of data to support decision making. We believe that the integration of Symon makes RMG the only company in the industry to serve both advertising and non-advertising customers with the full spectrum of digital signage hardware, software and services needed to build networks that reach and activate people wherever they are,” says Garry McGuire, Chief Executive Officer of RMG Networks.
RMG Networks will formally relocate its global headquarters to the Dallas metro area. The legacy Symon business will operate as a business unit of RMG Networks under the name RMG Enterprise Solutions. Key members of the Symon management team will remain with RMG Networks, including Symon’s Chief Financial Officer William Cole, who is expected to be named the CFO of RMG Networks and former Symon Chief Executive Officer Charles Ansley, who is expected to be named President of RMG Enterprise Solutions.
Given that Stratacache has a Digital OOH network in shopping malls (enVu) and several companies have some fairly broad and diverse capabilities, I’m not sure Garry’s argument about being the one and only stands up. However, this new, blended entity is one that should and will be watched. They have money and a drive now to raise share values.
One of the big challenges the new RMG will have is holding on to Symon people. Advertising media people from San Francisco and New York are just a tad different from people in Plano, Texas who have for many years been steadfastly focused on corporate communications and avoiding ad-based digital signage networks as clients as much as possible. Some people will embrace the company culture and management change. Others will walk.
It’s also a changed conversation for the sales people. You can see from the main art of RMG’s website it has gone from business travel ad-focused to much more generalized.