SYDNEY: RPMGlobal Holdings Limited (ASX: RUL) has announced that it will sell its global Advisory division to SLR Consulting Australia Pty Ltd for AUD$63.0 million.
The transaction, which will be paid in cash upon completion, is aimed at enabling RPM to focus solely on its Software business.
The strategic decision to divest the Advisory business aligns with RPM’s long-term vision of becoming the leading software technology business within the global resources industry. The agreement with SLR emerged from a confidential, comprehensive global sales process, during which RPM engaged with multiple potential buyers to identify the best strategic fit for its Advisory business.
The enterprise value of AUD$63.0 million represents a multiple of 2.0 times Financial Year 2024 (FY2024) Advisory net revenue and 8.1 times FY2024 Advisory profit contribution, before any apportionment of RPM’s unallocated corporate costs to the Advisory division. All RPM Advisory employees will be transferred to SLR and will operate under the “SLR” brand following the transition.
The transaction is expected to close early in Q4 FY2025, subject to customary conditions precedent. RPM will work with SLR under a Transition Services Agreement to facilitate a smooth transition. Following completion, the net cash proceeds from the divestment will be returned to shareholders via a capital return.
RPM Chairperson Stephen Baldwin said the divestment would deliver greater value to shareholders and that the timing was right due to the strong performance of the Advisory business. CEO and Managing Director Richard Mathews expressed confidence that SLR would be a good home for the Advisory employees and clients.
SLR CEO Bradley Andrews welcomed the RPM Advisory team, noting the alignment in vision and values between the two companies. He highlighted the strategic fit and cultural bridge based on common values and the spirit of collaboration.
The sale marks a significant shift for RPM, which will now focus on its software strategy, customers, products, and business. The divestment is expected to have little impact on the continuing operations and prospects of RPM’s software business.