Rimini Street Seals Merger Deal with GP Investments

October 13, 2017

By Modupe Gbadeyanka

Global provider of enterprise software products and services, as well as the leading third-party support provider for Oracle and SAP software products, Rimini Street, has announced the closing of its merger with GP Investments Acquisition Corporation.

A statement issued by Rimini Street noted that the combined company will retain the Rimini Street name and its common stock will be listed on the Nasdaq exchange as RMNI.

The transaction consideration consisted of approximately 65.6 million shares of GPIAC common stock valued at $10 per share to Rimini Street’s equity holders.

Raised investment funds of $50 million include cash proceeds from the issuance of 3.6 million shares of GPIAC common stock at $10 per share to an affiliate of GP Investments Ltd, and a third round of equity participation by Rimini Street’s largest shareholder, Adams Street Partners.

Investment proceeds were used to provide additional cash to the balance sheet, reduce total debt and pay certain transaction expenses.

The Rimini Street executive team, led by founder, CEO and chairman of the board of directors, Seth Ravin, will continue to manage the combined company.

In connection with the transaction, the Rimini Street board of directors has increased from seven members to nine members.

Mr Ravin and all current Rimini Street board members will continue their roles going forward, with the addition of Antonio Bonchristiano, CEO of GP Investments, Ltd., and Andrew Fleiss, managing director of GP Investments, Ltd., joining the board.

“Rimini Street has delivered 46 consecutive quarters of revenue growth by providing value-driven, innovative support solutions and exceptional service that meet the global needs of enterprise software licensees. With the completion of this merger and transition to being a publicly-traded stock, the combined business is better positioned to further capitalize on the $160 billion global addressable market for software maintenance and support,” said Mr Ravin, Rimini Street CEO. “The Company intends to leverage the additional opportunities afforded by the merger, investment raise and access to capital markets to expand our distinctive service offerings and capabilities in new markets and regions organically or through potential strategic acquisitions.”

It was gathered that Cowen served as financial and capital markets advisor to Rimini Street, and Citigroup Inc. acted as advisor to GPIAC. Wilson, Sonsini, Goodrich & Rosati, P.C. and Cooley LLP acted as legal counsel to Rimini Street, and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to GPIAC.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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