SAN FRANCISCO, CA and CHICAGO, IL -- (Marketwire) -- 01/17/13 -- 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, today announced that RMG Networks will combine with SCG pursuant to an Agreement and Plan of Merger.
RMG Networks Highlights
•Leading digital signage media and technology company •Dominant player in the travel media category of the digital out-of-home advertising sector •Substantial opportunities to grow revenues, both organically and from acquisition •Sector-experienced senior management team
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' current management team headed by Chief Executive Officer Garry McGuire. As a leading provider of software and services for digital signage networks and the operator of the nation's largest digital media network in the air travel space, RMG Networks is positioned to further execute its long term strategy as a public company.
Mr. McGuire commented, "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, stated, "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."
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.
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.
About RMG Networks
RMG Networks is a leader in the digital place-based video industry. It owns and operates place-based advertising networks serving captive out-of-home environments and develops software technology for powering digital media networks. The company was founded in 2005 as a digital signage network in cafes and has since evolved to become one of the leading providers of software and services for digital signage networks. It operates the nation's largest digital media network in the air travel space with more than 120,000 in-flight media screens, 2,200 aircraft and an audience of more than 35 million passengers per month. RMG Networks works with leading global brands and their advertising agencies across industries such as consumer electronics, automotive, financial services and technology looking to engage with the elusive affluent traveler audience segments. RMG Networks also operates a Visual Display Technologies business unit that builds and operates networks and offers a range of innovative signage software solutions for SMBs and enterprise customers. The company is based in San Francisco, CA and operates offices in New York, Detroit, Chicago, Los Angeles, and Beijing, China. For more information visit www.rmgnetworks.com.
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