• RPM made strategic decision to divest global Advisory business to focus solely on Software
• Enterprise value of $63M represents 2.0x FY2024 Advisory net revenue and 8.1x FY2024 Advisory profit
• All Advisory employees to transfer to SLR, who will operate under the 'SLR' brand

RPMGlobal Holdings Limited (ASX: RUL) has announced it has entered into an agreement to divest its global Advisory division to SLR Consulting Australia Pty Ltd (SLR) for an enterprise value of AUD$63.0 million. The transaction represents a strategic shift for RPM, which will now focus solely on its software business with the primary objective of becoming the leading software technology business within the global resources industry. The enterprise value of AUD$63.0 million represents a multiple of 2.0 times Financial Year 2024 (FY2024) Advisory net revenue of $31.1 million and 8.1 times FY2024 Advisory profit contribution of $7.8 million, before any apportionment of RPM's unallocated corporate costs. All RPM advisory employees will be transferred to SLR, and the Advisory business will operate under the 'SLR' brand following the transition. Completion is expected to occur early in Q4 FY2025, subject to customary conditions precedent. RPM will work with SLR under a Transition Services Agreement to facilitate an efficient transition and continuity of back-office support functions. The net cash proceeds from the Divestment will be returned to shareholders via a capital return. This transaction will utilise all of RPM's carried-forward capital tax losses and two-thirds of its carried-forward income tax losses in Australia.

Following the divestment, RPM will focus solely on its software strategy, customers, products and business. The company believes the divestment of the Advisory division will have little impact on the continuing operations and prospects of its software business, and will remove any impediment software investors have when analysing RPM, making the remaining business easier for investors to understand and evaluate.