RPMGlobal Holdings shares soared through the A$1 billion valuation mark to a record high after it disclosed an agreed takeover bid from heavy machine giant Caterpillar Inc (Cat).
RPM Global shares said it had received a non-binding indicative proposal from Caterpillar at $5.00 cash per share, valuing the mining software company at $1.123 billion (US$734 billion), via a scheme of arrangement.
By the time of writing, RPM Global (ASX: RUL) shares had soared by 87 cents (22.94%) to $4.64 after earlier touching a record high of $4.78.
RPMGlobal said it had entered into a six-week exclusivity deed with Caterpillar to allow it to undertake confirmatory due diligence and work towards reaching an agreement on acceptable terms of a binding scheme implementation deed (SID).
The RPMGlobal Board intended to recommend, and vote their shares in favour of, the transaction, subject to conditions including the parties entering into a binding SID on terms consistent with the proposal and following the completion of due diligence.
The recommendation is also subject to no superior proposal being received, and an independent expert concluding the transaction is in the best interests of shareholders.
Caterpillar submitted the indicative proposal after RPM undertook engagement and preliminary due diligence with interested parties, which was initiated in response to interest from global strategic buyers and financial sponsors.
The interest increased after the sale of RPMGlobal’s advisory division on 2 April 2025 to SLR Consulting Australia for an enterprise value of A$63 million.
The offer of $5.00 per share represented a:
- 32.6% premium to the last closing price of $3.77 per share on 28 August 2025
- 44.2% premium to the one-month volume weighted average price (VWAP) of $3.473, and
- 14.6x software annual recurring revenue of $71.8 million.
Listed on the Australian Securities Exchange since 27 May 2008, RPMGlobal describes itself as a leader in the provision and development of mining software solutions and professional development to the mining industry.
