Oracle's nemesis Rimini Street bags $125m investment

Independent firm looks to expand its portfolio that currently supports SAP and Oracle services, despite continued legal wrangling with Oracle

Software maintenance provider Rimini Street has raised $125m (£93m) in financing, even as its a long-running legal battle with Oracle rages on.

Rimini Street provides third-party maintenance for clients using Oracle and SAP services, and claims clients can save up to 90 per cent of operating costs by using its services instead of authorised support.

The fundraising was led by New York-based private equity firm Colbeck, and Rimini Street CEO Seth Ravin said the funding will be used to bankroll international growth and portfolio expansion.

"As organisations around the world switch from vendor support to Rimini Street support at a rapidly growing rate, we are increasing our investments in the service programmes that will help our clients fully realise the value of their SAP and Oracle enterprise software spend," Ravin said.

Oracle was awarded $50m in damages from Rimini Street last year, having sought $246m, in the latest episode of a long-running legal saga that started in 2010.

The claims centred around Oracle's accusations that Rimini Street engaged in illegal conduct and copyright infringement during the years that followed its 2005 launch.

The jury in the case , however, found that Rimini Street "innocently" infringed certain Oracle copyrights.

Ravin said that the outcome of the court case was a victory for "free market choice", and confirms that third-party support is fully legal.

Oracle is now seeking a permanent injunction against Rimini Street, claiming that the independent firm would not have "gotten off the ground" were it not for copyright infringement and illegal conduct.

Despite the settlement it is unlikely the battle is over, with appeals set to follow and another related lawsuit also under way.

Rimini Street has seen its revenue grow on average 36 per cent every year since 2010, and at the end of Q1 this year reported a 37 per cent revenue growth year on year to $35.4m.