RMG Acquired By Its Chairman And A Private Equity Firm; Goes Back To Being Private Company
October 4, 2018 by Dave Haynes
The winding road that has characterized the story of RMG Networks in the last 10 years has added another turn with news that the Dallas-based digital signage solutions company has been acquired and taken off the stock market, converted to a privately-held entity.
The transaction being announced Thursday was led by Austin, TX-based Virgo Capital, with participation from RMG’s prime existing investor, Gregory Sachs. RMG’s board is run by executive chairman Sachs.
Says a press release:
The transaction included a large capital infusion to be used towards growth and acquisitions. Virgo Capital, based in Austin, Texas, is a leading private equity firm focused on control investments in established enterprise technology companies. Virgo works closely with management teams and leverages its own experience and expertise to build valuable market leaders.
“RMG has consistently provided innovative solutions to some of the world’s leading companies for over 25 years. We are committed to work closely with the RMG team to strengthen our position as the market leader in the digital signage space with their exciting new solutions,” says Hemanth Parasuram, Co-Founder and Managing Director of Virgo Capital.
“I’m proud and excited to continue my commitment to RMG and believe, given our strong balance sheet, we will be very successful in expanding our footprint as the dominant player in the digital signage industry. I can’t think of a better partner than Virgo Capital to help accelerate our growth strategy,” says Sachs.
The announcement comes days after a merger agreement that, I guess, was developed to enable this event. You’d likely have to be a securities lawyer or someone who buys and sells companies to understand all the stuff lately.
The RMG story goes back years and years, and has had many twists and turns. RMG started as a Digital OOH network called Danoo, and then merged with another company to be Reach Media Group, hence the RMG. They got heavy into Digital OOH, but then did a tie-up/merger thing with Symon Communications, a Dallas company that had absolutely zippo to do with DOOH, and then things changed and changed again.
Which brings us to today, and a company that is kinda back doing what Symon did – chasing corporate communications accounts, but also retail. I don’t think they touch Digital OOH, but …