Video compression software company Reticulate Micro, Inc., based in St. Louis, is consolidating with Dallas-based RMX Industries Inc. through an expected share exchange transaction.
On April 1, Reticulate Micro announced it would acquire the remaining shares of RMX that the company does not already own. The acquisition “will consolidate operations and align resources to accelerate commercial business opportunities across key sectors,” according to Tuesday’s press release.
Once the transaction is finalized, which is expected at the end of April, the new entity will operate under the RMX banner.
“The acquisition of the remaining shares of RMX represents a natural next step in our growth strategy,” said Michael Chermak, Reticulate Micro executive chairman, in the April 1 press release. “By bringing all operations under one roof, we can streamline efficiencies, enhance our market position, and capitalize on the tremendous commercial opportunities ahead.”
RMX Industries’ compression technology, known as CRISP (Compressed Rate Intelligent Streaming Protocol), helps its customers manage data, video, and connectivity. While RMX initially focused on enhancing communications solutions for military applications, the company has since entered into commercial markets, making inroads in healthcare, telecommunications, mining, and other industries.
“The timing of this consolidation is driven by the rapid expansion of our commercial business pipeline. Following the acquisition, the Company will be well-positioned to execute its growth strategy, including a planned uplist to a major exchange. The Company remains committed to innovation and expanding its presence in high-growth commercial markets,” said RMX CEO Karl Kit.
According to the press release, the newly rebranded RMX plans to continue progressing on its existing technology, which has been trialed in over 20 military exercises and has “demonstrated groundbreaking capabilities,” like the first successful high-frequency radio video transmission.