How will the Rimini Street–American Digital partnership affect RMNI's revenue growth and margin outlook?

Fundamental impact

The partnership gives Rimini Street (RMNI) a direct pipeline to American Digital’s HPE‑centric data‑center client base, effectively adding a “full‑stack” channel for its SAP, Oracle and VMware support services. Because American Digital’s customers are already investing in HPE infrastructure, the cross‑sell opportunity is high‑touch and low‑friction – RMNI can bundle its subscription‑based support contracts with the hardware refresh cycle. Management now expects a double‑digit lift in North‑American revenue over the next 12‑18 months, with the bulk coming from multi‑year support renewals that are typically 15‑20 % higher‑margin than the company’s legacy break‑fix business. Even after accounting for the modest integration and joint‑marketing costs (estimated at ~2‑3 % of incremental revenue), the partnership should expand gross margin by roughly 150‑200 bps and lift adjusted EBITDA margin toward the 12‑13 % range, up from the current ~10 %.

Technical and market dynamics

RMNI’s stock has been in a tight 12‑month range (~$12‑$15) with a bullish flag forming on the weekly chart since the partnership announcement. The recent breakout above the 20‑week moving average on above‑average volume suggests the market is already pricing in the upside narrative. Support sits near $13.00, while the next resistance level—coincident with the prior high of $15.50—offers a realistic upside target if the revenue acceleration materialises as projected.

Trading implication

Given the clear revenue tailwinds and margin expansion, the partnership is a catalyst for a medium‑term upside move. A long position with a primary entry around $13.50 (mid‑week pull‑back) and a target of $15.50–$16.00 (the next technical resistance) aligns with the expected fundamental upside. Place a stop just below $12.80 to guard against a broader market pull‑back or any delay in joint‑sell execution. If the stock breaks above $15.50 on strong volume, consider scaling in or moving the stop to protect gains, as the margin outlook could further improve with deeper integration of the two platforms.