Wireless Ronin Technologies, Inc., the Minneapolis-based digital signage solutions provider, announced August 2nd that it has entered into an agreement to acquire privately held McGill Digital Solutions, Inc. Based in Windsor, Ontario, McGill is a provider of custom interactive software solutions, used primarily for e-learning and digital signage applications.
“This is an exciting opportunity,” said Jeffrey Mack, Wireless Ronin’s chairman, president and chief executive officer. “The ROI requirements that have been placed on digital signage programs are very high in this competitive environment. The ability to incorporate training and other onsite benefits will be one more way of leveraging our technology for our clients to increase the value added by a RoninCast digital signage network and differentiate our product offering.”
First incorporated in 1987, McGill has a strong legacy within the automotive market. The company has developed thousands of e-learning, e-performance support and e-marketing solutions to help companies train, motivate, and sell. Working across the spectrum, McGill develops the competencies and knowledge of the people who most influence product sales: sales associates and their customers. McGill also has a strong web development and marketing business that complements its product offerings.
Under the terms of the agreement, Wireless Ronin will acquire McGill for a combination of cash and securities. Wireless Ronin will make contingent milestone payments, based on future revenue generation and other benchmarks. The acquisition is expected to be mildly accretive to earnings within 12 months. No additional terms of the acquisition were disclosed in the August 2nd announcement
Mack continued, “Like Wireless Ronin, McGill’s management and associates are building a solid track record of delivering high-quality solutions and services and are establishing a respected and loyal customer base. This acquisition is great news for our customers, partners and shareholders, as it further augments our already robust product offering. As a result of this acquisition, we will increase the size of our talented sales and professional services teams, gain entry into new vertical markets, acquire state-of-the-art technology and add to a solid financial platform.”
As part of the acquisition and merger of McGill with Wireless Ronin additional sales and marketing, as well as product development capabilities will be acquired through McGill’s facility in Canada. The transaction is expected to close within 30 days. Subject to the closing, the integration and realization of operational efficiencies is expected to be completed by the end of 2007.
Mack concluded, “By joining forces with McGill, we believe we are positioned better than ever to deliver a comprehensive digital signage solution that drives efficiencies for our customers and yields a strong return on their investment in digital signage. With this acquisition, we believe that we have strengthened our platform for future success.”
Completion of the acquisition is subject to customary closing conditions.