News

Creative Realities completes Conexus World acquisition, names new CEO

Marketing technologies solutions provider Creative Realities has completed the acquisition of digital signage installation and services provider ConeXus World Global LLC.

October 20, 2015

Marketing technologies solutions provider Creative Realities Inc. announced it has completed the acquisition of ConeXus World Global LLC. ConeXus is now a wholly owned subsidiary of the company, according to the announcement.

ConeXus, a provider of digital signage installation and services, provides the company with what it calls "a stellar client list" of luxury brands, DOOH companies, advertising networks and global retailers with active installations in 40 countries. ConeXus generated approximately $4.5 million of revenue for the first nine months of 2015, a doubling over the prior year's revenue, and has the potential for significant continued expansion, the company said. "Taken together with the revenue initiatives and cost reduction activities that CRI has been undertaking, this business combination creates a larger and more profitable enterprise in a high growth industry that is in the process of consolidating," according to CRI.

Conexus World President and CEO Rick Mills, the incoming CEO and director of the combined company, said in the announcement, "We are pleased to be joining forces with the Creative Realities team. This is about creating scale and a platform optimized for organic growth and acquisitions. As the growth of digital marketing continues to accelerate, we are well positioned to be the provider of the total solution."

Company Chairman Alec Machiels said in the announcement, "CRI and Conexus are a fantastic strategic fit. Conexus' reputation, personnel and operational expertise in designing, installing and servicing high-end marketing technology solutions and complex audio-visual networks domestically and internationally is outstanding. Combined with CRI's core competencies in the design of front-end omnichannel experiences, content solutions and other capabilities, this will significantly enhance and further differentiate our end-to-end offerings in the marketplace. The board is also extremely pleased to be naming Rick as CEO of the combined company. He has over 20 years of experience in this field and significant public company experience."

Simultaneous with closing of the ConeXus transaction, the company said, it entered into a $3 million accounts receivables financing facility with a nationally established lender and also closed on an additional $500,000 of secured promissory notes.

The merger agreement was amended in part to reflect this and certain other conditions, and is filed with the SEC. The stock consideration payable in the transaction is equal to approximately 21.3 percent of the company on a fully diluted, as-converted basis, after the issuance of a combination of the company's common and preferred stock at a price (or conversion price) of $0.28 per share. This amount includes a hold-back provision that could reduce the final stock consideration paid by the company, according to the announcement.