Independent enterprise software support provider Rimini Street and GP Investments Acquisition Corp (GPIAC), a special-purpose acquisition company created by GP Investments Ltd, are merging to form Rimini Street Inc, a public company (NAS:RMNI) with a post-close equity value expected to be in the region of US$850 million.
The merger will provide Rimini Street with an injection of growth capital that will be used to expand their service offerings, to strengthen their balance sheet and to fund potential acquisitions going forward.
“I am looking forward to the next chapter of Rimini Street growth that will be fuelled by this merger,” said Andrew Powell, managing director, Rimini Street, APAC.
“The additional capital will further enable and accelerate global expansion in regions like ANZ and APAC where we are experiencing growth that is even higher than the company average globally,” he said.
In addition to providing subscription-based support services for a range of SAP software, Rimini Street also supports clients of Oracle, Siebel and other vendors, with almost 1900 clients and about 900 employees in 13 countries. The company reported annual run-rate revenues exceeding US$196 million as of March 31.
Founded in 2005, Rimini Street set out to transform customer support by providing seasoned experts on the front-line and by supporting customisations as part of their core services.
Seth A. Ravin, founder, CEO and chairman of the board of directors of Rimini Street, will be appointed CEO and chairman of the board of directors of the new corporation when the merger completes, which is expected to be by the third quarter this year.
“Rimini Street has delivered 45 consecutive quarters of revenue growth by providing value-driven, innovative support solutions and exceptional service that meet the global needs of enterprise software licensees,” said Ravin. “We believe that having a public company structure will further fuel our growth by facilitating additional sales opportunities and providing additional capital market access.”
“Rimini Street is a proven innovator and market disruptor,” said Antonio Bonchristiano, CEO, GPIAC and GP Investments. “As a high-growth company capitalising on a large, global addressable market, Rimini Street presents an attractive investment opportunity. The company’s client value proposition, seasoned management team, track record of execution and years of consecutive growth are very compelling.”