Creative Realities (CREX) Stock: Why The Price Surged Today

By Amit Chowdhry ● Nov 15, 2021
  • The stock price of Creative Realities Inc (NASDAQ: CREX) increased by over 130% pre-market today. This is why it happened.

The stock price of Creative Realities Inc (NASDAQ: CREX) increased by over 130% pre-market today. Investors are responding positively to Creative Realities and Reflect Systems announcing that the companies have executed a definitive merger agreement. Under the terms of the deal, the combined company will operate under the Creative Realities name and continue to be listed on NASDAQ as CREX.

CRI’s CEO Rick Mills will continue to act as CEO for the combined company. And Lee Summers, CEO of Reflect, will also remain with the company and lead the combined company’s AdTech initiatives, including full integration with Supply Side Platforms and Exchanges.

Unlike other acquisition/merger strategies in digital signage, CRI plans to fully integrate the two companies. The combined company will be headquartered in Louisville while maintaining the Reflect offices in Dallas.

Post-merger, the company will have one of the broadest offerings in digital signage, including:

— Purpose-built menu board software via the CRI Clarity platform

— Digital signage Software-as-a-Service (SaaS) via ReflectView and Reflect Xperience

— Digital-Out-Of-Home advertising solution with the AdLogic platform

— Engineering design and planning

— Installation services

— Creative planning and design

— IPTV streaming platforms

— Post-deployment support

The companies are expecting the merger to close in the first quarter of 2022.

KEY QUOTES:

“This really is an ideal combination. CRI has a strong history of deploying large-scale and sophisticated digital signage projects, driven by our exceptional creative and project management teams. Reflect has world-class content management software platforms like ReflectView, which has become an industry standard for scalable, flexible, reliable digital signage. Reflect’s AdTech platform, AdLogic, is a game-changing solution for Digital-Out-Of-Home advertisers, and is currently used by publishers to deliver approximately 1 billion ads per month. Combined, we offer some of the most comprehensive digital signage and media solutions available in a powerful one-stop shop for customers.”

“With our track record of successful combinations, the company is well positioned for continued organic and strategic growth. By fully integrating our solutions and business operations, we can bring to the market the most competitive product and service offerings available for the digital signage market.” 

— Rick Mills

“Not only do CRI and Reflect have complementary offerings, but we have also traditionally been strong in complementary markets. While CRI has excelled in Quick Service Restaurants, stadiums and C-store markets, Reflect has become an industry leader in retail, healthcare, banking, Digital-Out-of-Home and corporate communications. Together we can address virtually any digital signage need for any sector.”

— Lee Summers