- 235-pence-a-share cash offer marks a 74.7 percent premium to Eleco’s undisturbed share price
- Shareholders holding 45.2 percent of Eleco’s stock have already committed to back the deal
- Eleco’s annualized recurring revenue jumped 29 percent to £34.3 million ($47 million; €40 million) last year
Accel-KKR has agreed to acquire Eleco, a London-headquartered provider of software for the construction and built-environment sector, in a recommended cash offer valuing the AIM-listed company’s equity at £207.6 million ($281 million; €242 million) on a fully diluted basis.
The offer of 235 pence per share represents a 74.7 percent premium to Eleco’s closing price of 134.5 pence on September 9, the day before the announcement, and implies an enterprise value of £192.4 million, equivalent to about 20.2x Eleco’s EBITDA for the year ended December 31, 2025.
Eleco’s board has unanimously agreed to recommend the offer to shareholders. Investors holding 45.2 percent of the company’s shares, including Allen & Co and members of the Ketteley family, have already given irrevocable undertakings or letters of intent to support the deal.
Eleco provides project planning, cost management and facilities-management software under brands including Asta Powerproject, Pemac and Kivue. The company’s book of recurring revenue, which made up 81 percent of total sales of £38.8 million last year, grew its annualized run rate by 29 percent to £34.3 million.
“Eleco has built a leading construction technology platform with a strong reputation among its customers through its domain expertise…” said Maurice Hernandez, a managing director at Accel-KKR.
The deal is expected to close during or before the first quarter of 2027, subject to shareholder and court approval. NM Rothschild & Sons advised Accel-KKR, while Stephens Europe and Cavendish Capital Markets advised Eleco.
Editor’s note: This news brief was produced with the assistance of artificial intelligence.