Adrian J Cotterill, Editor-in-Chief
Late last week RMG Networks and SCG Financial Acquisition Corp. made the formal announcement of their ‘Agreement for Business Combination’, i.e. a ‘merger’.
This of course also relates to the Non-Binding Letter Of Intent with Symon Communications, Inc. that we wrote about back on 18th December 2012.
The announcement basically said that …
- Reach Media Group Holdings, Inc. (RMG Networks), a leader in the digital signage industry, and SCG Financial Acquisition Corp. (NASDAQ: SCGQ) (OTCBB: SCGQU) (OTCBB: SCGQW) (SCG), a special purpose acquisition company, announced that RMG Networks will combine with SCG pursuant to an Agreement and Plan of Merger
- The boards of directors of SCG and RMG Networks have each approved the proposed transaction
- Completion of the transaction is expected during the first quarter of 2013
- Upon completion of the transaction, RMG Networks will continue its existing business and expand into new lines of business under the leadership of RMG Networks
RMG Networks’ CEO Garry McGuire told us “This is a very exciting time for RMG, for our employees, for our customers and our business partners. As a public company with access to the capital markets, RMG will be able to accelerate our rate of growth.”
Gregory H. Sachs, SCG’s Chairman, Chief Executive Officer and President said “RMG is a leader in the digital signage space and the resulting company will be well-positioned to lead the growth and development of this market. RMG’s track record for technology development and digital out-of-home media sales offers our shareholders an attractive opportunity for value creation from both organic growth and sector acquisitions. We look forward to working with RMG in this emerging industry segment.”
Barclays is acting as exclusive financial advisor to RMG Networks. Legal counsel to SCG is DLA Piper LLP (US). Legal counsel to RMG Networks is Fenwick & West LLP.
Simply put, RMG Networks gets a NASDAQ listing, will have bought Symon Communications, Inc. (subject to due diligence) and expect several other quick fire media acquisitions as well / shortly thereafter. Exciting times.
About SCG Financial Acquisition Corp.
SCG Financial Acquisition Corp. is a special purpose acquisition company formed for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, exchangeable share transaction or other similar business transaction, one or more operating businesses or assets. SCG was incorporated in Delaware on January 5, 2011. Its securities are quoted on the NASDAQ Capital Market (ticker: SCGQ) and the OTC Bulletin Board (tickers: SCGQU and SCGQW).