US-based Caterpillar has confirmed it will pay A$1.123 billion (US$736 million) for Australia’s RPMGlobal, a mining software firm with deep digital links to Caterpillar’s enormous global mining equipment footprint.
The ratification comes after Australian Securities Exchange-listed RPMGlobal said last month it had entered an exclusivity arrangement with Caterpillar and the machinery major would do final due diligence before confirming a deal.
The acquisition now is subject to regulatory and shareholder approval. RPMGlobal’s board has unanimously backed the Caterpillar offer.
RPMGlobal’s share price is up more than 70% since the start of July this year. At A$4.86 today, the company had a market value of $1.08 billion. Caterpillar is paying $5 a share.
