RMG Networks Goes Public In Reverse Merger

Reach Media Group Holdings Inc., a San Francisco-based digital signage company, went public Monday in a $27.6 million reverse merger with SCG Financial Acquisition Corp. (NASDAQ: SCGQ) of Chicago.

The deal results in a single company called RMG Networks that has a market capitalization of $98 million. It leaves RMG's current management in place, with CEO Garry McGuire in charge, and SCG CEO Gregory Sachs becoming executive chairman of the combined company, which is expected to use the stock symbol RMGN.

RMG operates the largest digital media advertising network in the air travel space with more than 120,000 screens in airports and airplanes with an audience of 35 million passengers per month. It also has screens in 161 U.S. shopping malls that get 62 million monthly viewers.

SCG also said it anticipates soon completing the $45.5 million purchase of Symon Communications, a Texas-based digital signage company owned by San Francisco-based Golden Gate Capital.

RMG in May 2012 had sold its digital signage network targeting cafes, small restaurants and juice bars for an undisclosed sum to San Francisco-based Brite Media. Founded in 2006, RMG was previously known as Danoo and it got financial backing from Kleiner Perkins Caufield & Byers, DAG Ventures, National CineMedia and Tennenbaum Capital Partners.