RungePincockMinarco Acquires Mining Software Company iSolutions for $8 Million
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RungePincockMinarco Ltd will cast a wider net in the mining software industry after entering into an agreement to acquire 100 percent of iSolutions, a global mining asset management software company.
The consideration for the transaction is $8 million, followed by earn out payments of $6.5 million over three years based on the achievement of performance targets.
RUL will also issue 9,166,666 shares to the shareholders of iSolutions which will be held in escrow for 12 months. The shares will be issued at $0.60 each (total value $5.5 million), which is at a premium of 88 percent over RUL’s last traded price.
iSolutions’ flagship asset management software tracks and manages the repair and maintenance of mining equipment from the world’s largest mining original equipment manufacturers (OEMs) and their dealer networks.
The addition of iSolutions software products is expected to provide synergistic benefits to RPM, which is a provider of software solutions and advisory services for mine planning, scheduling, execution and budgeting.
Furthermore, RPM can tap into iSolutions’ OEM client base which consists of big names in the industry including Caterpillar, Komatsu, Hitachi, Michelin and Atlas Copco.
The use of the iSolutions software isn’t limited to just the OEMs, with large mining companies including Glencore, Newmont, Anglo American and Newcrest utilizing iSolutions software to manage their equipment.
The combined RPM and iSolutions offering will create the only single vendor production and maintenance enterprise execution system in the market.
This system is expected to reduce the cost of mining as both the production and maintenance teams will be using the same software application to maximize operational efficiency.
The acquisition of iSolutions is expected to provide RPM with annual revenue of $10 million of which $4.8 million is recurring in nature and a forecast EBITDA in the 2017 financial year of $4.8 million.
Source: (May 17, 2016) Proactive Investors
About RungePincockMinarco
RungePincockMinarco Ltd provides advisory consulting, technology and professional development solutions to the mining industry.
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