Leading mining software play RPM Global Holdings (ASX: RUL) is purchasing privately owned provider of mine-wide operational reporting and analytics software group MinVu.
The acquisition of MinVu is expected to provide RPM with annual revenue of around $2.8 million of which $1.3 million is recurring in nature and first year annual EBITDA of $1.2 million.
The deal – which represents the 7th software acquisition RPM has made in the past three and a half years – will also see a significant increase in the breadth of its software and services offering and customer base.
MinVu is the only company that we know of who have built a comprehensive suite of standard integration adaptors across all key operational systems that operate in a mine,” RPM CEO and Managing Director Richard Mathews said.
“As such we believe the integration, data validation, structured Operational Data Store (ODS) and associated reporting will give RPM a commanding head start over other software vendors who decide they want to provide a mining Short Interval Control system in the future.”
MinVu software is currently used by some of the world’s major miners including BHP, Glencore, Anglo American, South 32, Yancoal and US Steel.
RPM will pay $1.2 million upfront from cash reserves, followed by further payments over a two-year period of up to $1.28 million based on successful renewal and collections of annuity revenue from MinVu’s current customers.
RPM will also issue 3 million shares to the outgoing shareholders of MinVu and their nominees.
The transaction is expected to close on 31st of January 2018.
The stock closed 2 per cent higher at 66c.