The RPMGlobal Holdings Ltd (ASX: RUL) share price is going to be on watch today after announcing an acquisition called Nitro Solutions.
RPMGlobal is a global leader in mining software solutions, advisory services and professional development in the mining industry.
RPMGlobal acquires Nitro Solutions
RPMGlobal is going to buy Australian environmental, social and governance business Nitro Solutions Pty Ltd.
The private business was founded in July 2015 by Ngaire Tranter. It provides the mining industry with quality focused ESG services in the areas of environmental approvals, impact assessment, regulatory advice, environmental audits, compliance reporting (due diligence) and environmental economics, policy & legislation advice.
Management said the acquisition will be the catalyst to bring together all of RPM’s ESG professionals who are spread across the globe into one division which will be headed by Ngaire.
As part of the acquisition consideration, RPMGlobal will issue 95,941 shares ($160,000).
Management comments
RPMGlobal CEO and Managing Director Richard Mathews said: “Whilst our mining advisory ESG professionals have been engaged to perform and manage numerous ESG mandates around the world, until now we have not had a dedicated division focused solely on ESG. Ngaire and her team have an excellent reputation within the mining ESG market which gives us greater confidence that we can build a world class mining focused ESG business leveraging an ESG team that knows and understands mining from the ground up.
“This is just the start of RPM’s ESG journey as we look to grow RPM’s ESG mining services capabilities both organically and inorganically. We also intend to harness the deep ESG domain knowledge of the Nitro team to assist RPM’s technology division to identify software products we can either acquire or alternatively build to service this accelerating market segment.”
Summary thoughts on RPMGlobal and the share price
Over the last six months the RPMGlobal share price has gone up 34%. I think this acquisition will help it win more clients and serve existing clients better. Miners are coming under increasing ESG pressure, so it’s good that RPMGlobal will be able to help more in this area. Further acquisitions could be very useful.
It’s a great business, though it has run hard in recent weeks. I think it might be worth a small consideration today and adding more if it dips or as it continues with its success. It’s one of the promising ASX growth shares out there.
