RMG Networks Goes Public In Reverse Merger
RMG Networks is a digital media company that went public yesterday as part of a complex reverse merger with SCG Financial Acquisition Corporation. RMG was able to bypass the traditional IPO route through this process.
RMG Networks is known for offering “place-based advertising.” The company offers services, signs, and ads in airplanes and malls. RMG Networks was acquired by SCG. The company’s public profile will shift from SCG to RMG in the next 2 weeks. RMG will be acquiring Texas-based digital signage company, Symon.com, in the next few weeks.
RMG Networks CEO Garry McGuire will remain the CEO of the company upon the merger. The current SCG CEO, chairman, and president Gregory Sachs will become the executive chairman of the public RMG Networks company.
RMG reported $25.7 million in revenues and $2.9 million in profit for 2012. The company was listed at $10 per share on the market yesterday and it is currently trading at about $9.99 as of the time I was writing this.
RMG’s is listed under the stock ticker symbol “SCGQ” on the Nasdaq exchange. In about 1-2 weeks, the ticker symbol will be changed to RMGN. Before going public, RMG Networks raised funding from Kleiner Perkins Caufield & Byers.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry