The RPMGlobal Holdings Ltd (ASX: RUL) share price is sliding in late morning trade. This comes after the mining software company announced the acquisition of Perth-based Environmental Social and Governance (ESG) company, Blueprint Environmental Strategies.
At the time of writing, RPMGlobal shares are swapping hands for $1.81, down 2.95%.
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RPMGlobal expands portfolio
In a statement to the ASX, RPMGlobal advised it has entered into a share purchase agreement to acquire 100% of the issued share capital in Blueprint.
RPMGlobal noted the acquisition is an important step to grow its mining-focused ESG team and capabilities. In particular, demand has heightened in recent times to address ESG related services and technology solutions from the mining industry.
The acquisition will complement RPMGlobal's separate ESG mining division and the acquired Brisbane-based ESG company, Nitro Solutions, in July 2021.
Blueprint is expected to deliver ESG services to mining clients. This includes all phases from feasibility, funding and approvals through development and operations to asset closure and rehabilitation.
RPMGlobal noted that Blueprint has experience across environmental science and geoscience, risk management, impact assessment, due diligence, governance, social license to operate and geographic information systems.
The total consideration for the transaction is estimated to be around $3.5 million for the privately-owned company. This will be made up of a cash payment of $2 million on completion, $1 million in RPMGlobal shares and $500,00 in working capital adjustments.
The cash component will be entirely funded by RPMGlobal's existing cash reserves.
In total, 530,178 RPMGlobal shares will be issued to the vendors at an issue price of $1.88 per share.
Completion of the deal is scheduled to close on 30 September, subject to a number of customary conditions.
RPMGlobal CEO and managing director Richard Mathews commented:
The existing RPM ESG team has already exceeded our expectations.
It has been fantastic to be able to introduce an ESG offering to RPM's existing clients and to additionally expand the breadth of mining advisory offering available to all clients, especially at a corporate level, to better understand ESG and how to establish and address their growing ESG compliance and reporting requirements.
RPMGlobal share price summary
Over the past 12 months, RPMGlobal shares have posted a gain of more than 64%, with year-to-date up 44%.
Based on today's price, RPMGlobal presides a market capitalisation of roughly $429.8 million and has approximately 230 million shares outstanding.
