Caterpillar launches $1.1bn play for RPMGlobal

Caterpillar will engage in a six-week exclusivity period to explore a potential acquisition of mining software company RPMGlobal.

Speaking to The Australian Financial Review (AFR), Veritas analyst Max Moore described the move, valued at $5 per share, as “of the highest quality”.

“Getting acquired by the biggest original equipment manufacturer in the world says a lot about the quality of the business,” Moore said.

“We thought RPMGlobal was the highest quality out of all of them (ASX-listed mining software companies), and was still the last one to be listed. Eventually, it was going to be acquired by one of these guys.”

Caterpillar’s play comes after Micromine, another mining software company, was bought by Weir Group in March.

“The acquisition of Micromine is a significant step in our strategy of investing in technology to accelerate smart, efficient and sustainable mining,” Weir chief executive officer (CEO) Jon Stanton said at the time.

Caterpillar’s acquisition of RPMGlobal values the latter at $1.123 billion, with $5 per share representing a 32.6 per cent premium to RPM’s last closing price of $3.77 per share on August 28.

RPM said it was running a “structured process” to determine the best buyer after receiving inbound interest from “global strategic buyers and financial sponsors” that increased after the company divested its Advisory division in early April.

“Throughout the process, RPM undertook a period of engagement and preliminary due diligence with interested parties, including Caterpillar,” RPM said.

“As part of the preliminary due diligence process, RPM provided parties access to a range of materials on the business, including management’s guidance for FY26 released to the market on August 26.”

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