A Dallas startup is set to become part of a publicly traded company via an acquisition deal.
Richardson-based digital signage and content management software company Reflect Systems has inked a definitive agreement to merge with Louisville’s Creative Realities, a fellow operator in the marketing technology space.
“Combined, we offer some of the most comprehensive digital signage and media solutions available in a powerful one-stop-shop for customers,” said Rick Mills, Creative CEO, in a statement.
The deal, which will see the combined company continue to trade on the Nasdaq under the ticker CREX, is expected to close in the first quarter of next year. According to an SEC filing, Reflect’s common and preferred stock shares will be converted into $18.6 million in cash. Following the closing, Reflect shareholders will own nearly 22% of the combined company, per the filing.
Mills will continue to lead the combined company, which will maintain Reflect’s DFW offices and keep its headquarters in Kentucky, while Reflect CEO Lee Summers will oversee adtech initiatives within the company. Summers joined Reflect in 2017, taking over from Bill Warren, who kept a role as executive board chairman.
While both companies operate in a similar space, Reflect has focused on industries like retail, health care and banking and Creative has focused on things like restaurants and stadiums. The companies said the move will help broaden Creative’s solutions offerings and reach more customers.
“With our track record of successful combinations, the company is well-positioned for continued organic and strategic growth,” Mills said. “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.”
Reflect, which focuses on helping businesses determine the best advertising solutions, content and application of digital signage and solutions, was launched in 2001. Since then, the company has grown to more than 60 employees and has deployed more than 500,000 screens running on its technology across the country for clients like Levi’s, Target and GameStop. According to Crunchbase, Reflect has raised a total of about $12 million.
Creative was founded in 2003 and went public in 2018, raising around $10 million in its IPO. In Q2 of this year, the company reported $1 million in net income and $1.9 million in EBITDA. News of the Reflect deal resulted in its share value doubling to $2.96 in premarket trading on Monday. As of 1:45 p.m. Central Standard Time, its shares were trading at $2.99, after hitting a high of $3.53 earlier in the day.
“Together we can address virtually any digital signage need for any sector,” Summers said in a statement.
