RMG Networks Completes Acquisition of Symon Communications
April 19 2013 - 4:40PM
Marketwired
SCG Financial Acquisition Corp., d/b/a RMG Networks (NASDAQ: RMGN)
(OTCBB: SCGQU) (OTCBB: SCGQW) (RMG Networks), today announced the
successful acquisition of Symon Communications Holdings Corporation
(Symon), a leading global provider of intelligent visual
communications. With this step, RMG Networks expands its digital
signage media offering to include 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 combination of RMG Networks and Symon creates a leading
digital signage media company that offers intelligent visual
technology solutions to enterprise customers and leadership in
digital place-based media to advertisers. RMG Networks now has over
7,500 customers, including approximately 70% of the Fortune 100, a
majority of the Fortune 500, and over 1 million installed
screens.
The digital signage market is expected to experience strong
near-term growth. PQ Media projects media revenue for the U.S.
digital-out-of-home market to increase at a compound rate of 12.5%
through 2016. Intel's Embedded and Communications Group has
published that it expects the number of digital signage media
players installed worldwide to increase from 3 million today to
approximately 10 million by 2015.
"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," said
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," said Garry McGuire, Chief
Executive Officer of RMG Networks.
Following the closing of the acquisition, RMG Networks will
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.
Lazard Freres & Co LLC acted as exclusive financial advisor
to RMG Networks and legal Counsel to RMG Networks is Greenberg
Traurig, LLP. Legal counsel to Symon was Kirkland and Ellis
LLP.
About RMG Networks
With the acquisition of Symon, RMG Networks becomes a leading
provider of complete digital signage solutions. Its RMG Media
Networks business unit engages elusive audience segments with
relevant content and advertising delivered through digital
place-based networks, including the largest digital airline media
network with a monthly audience of more than 35 million passengers
and a mall media network reaching over 62 million monthly viewers
in 161 shopping malls across the United States. Its RMG Enterprise
Solutions business unit provides digital signage hardware, software
and services to power state-of-the-art visual communication
implementations for critical contact center, supply chain, employee
communications, hospitality, retail and other applications. The
company is based in Plano, TX and operates offices in major cities
throughout the United States and in the United Kingdom, China,
India and the U.A.E. Its securities are traded on the NASDAQ
Capital Market (RMGN) and the OTC Bulletin Board (SCGQU and SCGQW).
For more information visit www.rmgnetworks.com.
FORWARD LOOKING STATEMENTS
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
"anticipate," "expect," "estimate," "project," "intend," "plan,"
"believe," and words and terms of similar substance used in
connection with any discussion of future plans, actions, or events
identify forward-looking statements. Investors are cautioned that
such forward-looking statements, including statements with respect
to anticipated growth in the digital signage market and with
respect to revenues, earnings, performance, strategies, prospects
and other aspects of the businesses of RMG Networks, Symon and the
combined companies are based on current expectations that are
subject to risks and uncertainties.
A number of factors could cause actual results or outcomes to
differ materially from those indicated by such forward-looking
statements. These factors include, but are not limited to: (1) the
outcome of any legal proceedings that may be instituted against RMG
Networks or others relating to the business combination and the
transactions contemplated thereby; (2) the risk that the completed
transaction disrupts current plans and operations as a result of
the announcement and consummation of the transactions described
herein; (3) the ability to recognize the anticipated benefits of
the business combination; (4) costs related to the business
combination; (5) changes in applicable laws or regulations; (6) the
possibility that RMG Networks may be adversely affected by other
economic, business and/or competitive factors; (7) the ability to
integrate RMG Networks' and Symon's business and operations; (8)
the anticipated growth and growth strategies; (9) the need for
additional capital and the availability of financing; (10) the
combined company's ability to successfully manage relationships
with customers, partners and other important relationships; (11)
the combined company's ability to integrate the management team and
employees; (12) the loss of key personnel or expenditure of a
greater amount of resources attracting, retaining and motivating
key personnel than in the past; (13) the compatibility of business
cultures; (14) technological changes; (15) demand for the combined
company's products and services and (16) other risks and
uncertainties indicated from time to time in filings with the SEC
by SCG Financial Acquisition Corp.
Additional risks and uncertainties are identified and discussed
in SCG's reports filed with the SEC and available at the SEC's
website at www.sec.gov. Forward-looking statements included in this
press release speak only as of the date of this press release. SCG
undertakes no obligation to update its forward-looking statements
to reflect events or circumstances after the date of this press
release unless required by applicable law.
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Contacts Investor: Loren Buck 312-784-3958
loren.buck@rmgnetworks.com Media: Shawn Roberts 415-305-6456
shawn.roberts@tallgrasspr.com
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