SCG Financial Acquisition Corp., d/b/a RMG Networks, has announced the successful acquisition of Symon Communications Holdings Corp. 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 digital signage media company that offers intelligent visual technology solutions to enterprise customers and leadership in digital place-based media to advertisers. RMG said its air network reaches 35 million travelers monthly, while its mail media network has 62 million viewers. With Symon integrated as RMG Enterprise Solutions, the company now has more than 7,500 enterprise customers in verticals ranging from hospitality to healthcare, including approximately 70 percent of the Fortune 100, a majority of the Fortune 500 and more than 1 million installed screens, the company said.
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 percent 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.
The new company's securities are traded on the NASDAQ Capital Market (RMGN) and the OTC Bulletin Board (SCGQU and SCGQW).
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