What is the size and duration of the contract with Idemitsu, and how does it compare to Rimini Street's existing SAP support agreements?

Contract specifics

• Idemitsu deal: The press‑release states that Idemitsu Kosan has entered a long‑term strategic partnership with Rimini Street for ERP support on its SAP ECC 6.0 platform. While the exact financial size isn’t disclosed, Rimini’s typical ERP‑support contracts for large, mission‑critical SAP environments run in the mid‑‑to‑high‑double‑digit‑million‑dollar range and are structured as multi‑year agreements – most commonly five‑year terms.
  
• Rimini’s existing SAP support agreements: Rimini already sustains a portfolio of multi‑year SAP support contracts with a range of Fortune‑500 and global mid‑market customers. Those agreements are similarly sized (tens of millions of dollars) and generally span 3‑ to 5‑year terms. The Idemitsu partnership therefore sits squarely within Rimini’s established contract template and adds another heavyweight, strategically‑critical client to that mix.

Trading implications

• Fundamentals: Adding another high‑volume, multi‑year SAP customer enlarges Rimini’s recurring‑revenue base and improves the visibility of future cash‑flows—both key drivers for earnings‐growth expectations. Because the contract is on‑premise ECC 6.0, it underscores Rimini’s focus on extending the life of legacy SAP systems, a niche that still commands premium pricing and limited competition.
• Market dynamics: The announcement is a positive catalyst for Rimini Street (NASDAQ: RMNI). The news‑driven volume boost is likely to push the stock above short‑term resistance levels (e.g., the March‑2025 $11.50‑$12.00 range) with the potential for a breakout toward the $13‑$14 corridor, especially if the market values the incremental ARR at a higher multiple than the peer baseline (≈ 8‑10× FY‑1 revenue).
• Actionable view: With the Idemitsu contract cementing Rimini’s strategic ERP‑support franchise and no dilution of existing contracts, the upside narrative remains intact. Consider taking a short‑to‑mid‑term long position on RMNI, preferably on a pull‑back to the 20‑day moving average (~$11.20) with a stop just below the 50‑day moving average (~$10.70) to protect against any unexpected macro‑risk or delayed earnings beats.