Caterpillar has “paid a significantly higher multiple for a less attractive business across all key metrics”, is the view of London investment bank Panmure Liberum when it compares the US machinery giant’s US$736 million acquisition of RPMGlobal with Weir Group’s $800 million Micromine deal done earlier this year.
The deals are part of a bigger mining software M&A picture that has seen Sandvik, Epiroc, Komatsu, Bentley Systems, Constellation Software, Hexagon and others pay big bucks for mining tech in the past five years.
Micromine and RPMGlobal are both Australian-based, as were many other mining technology firms acquired by international buyers in that period.
Micromine’s calendar 2025 revenue was projected at A$138 million, denoting a circa-10-times EV-to-revenue multiple “and EBITDA multiple of c20x at December 2025, excluding the impact of synergies”.
RPMGlobal expects software revenue of A$88-92 million in the 12 months to June 30, 2026, with forecast EBITDA at $23-25 million. This compares with $76.7 million and $6.2 million, respectively, for FY2025.
Panmure Liberum said this week the Micromine acquisition “underscores Weir’s strong execution in identifying and securing high-quality acquisitions at compelling valuations”.
“RPM [is] a competitor with Micromine … They have product overlap in mine planning and fleet management software solutions,” the bank said.
“Though we note that there remains plenty of whitespace for Micromine and RPM to target.
“The [Caterpillar] acquisition is a net positive for Weir and Micromine given that it should help to drive adoption and awareness with major miners of the benefits of digital solutions across the mining value chain.
“We do not believe that the acquisition will impact Weir’s strategy, targets or investment plans for Micromine. We remain encouraged about the business and growth potential across its digital solutions.”
Panmure Liberum said it expected more colour on mining digital markets and trends at Weir’s December 3 Capital Markets Day.
It said third-quarter financial reporting by Weir peers Sandvik and Metso indicated “continued momentum in mining activity”.
“Positive news across the space indicates that its [Weir] earnings momentum has further to run.
“Sandvik’s Q3 25 results showed strong mining demand, with orders up sharply, driven by the mining division which has the strongest read across to Weir.
“The recent reporting period indicates that demand for mining equipment and services remains resilient, with robust aftermarket growth and a continued emphasis on margin discipline. These trends underpin Weir’s positive outlook for the mining cycle but also highlight ongoing cost and currency headwinds.
“We do not expect as strong order growth at Weir in Q3 25 given that it has not publicly announced any large orders between July 1 and September 30 and its comparator benefitted from £51 million of orders on Reko Diq and OCP’s greenfield phosphate projects.
“However, it indicates that the backdrop remains positive.”
