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(Sharecast News) - Construction software provider Eleco has agreed to be taken over by private equity firm Accel-KKR in a £207.6m deal.
Under the terms of the acquisition, Accel-KKR will pay 235p per share in cash, which is a premium of 74.7% to the closing share price on Wednesday.
The acquisition represents an implied enterprise value multiple of around 20.2x EBITDA for the year ended 31 December 2025 and 31.9x Eleco's cash EBITDA for the same period.
The PE firm said it believes that it can support Eleco in its continued product development, SaaS transition and AI implementation "to maximise its market opportunity by providing additional resources and capital to enable both organic and inorganic growth, as well as the expertise and operational and strategic support brought through its extensive experience in helping technology businesses expand internationally".
Eleco's board has unanimously concluded that they intend to recommend the offer, which provides a "compelling return" for shareholders.
Mark Castle, non-executive chair of Eleco, said: "Eleco has successfully transformed from a building products business to a specialist provider of software and related services to the built environment. Alongside this business transformation, Eleco has successfully transitioned its business model from perpetual software licences to subscription and SaaS-based revenues while maintaining profitability. All our colleagues and shareholders should be proud of these achievements.
"Following the acquisition, the Eleco board believes that, with the support of Accel-KKR, Eleco will be better positioned to grow the business for the benefit of customers and colleagues."
At 1316 BST, Eleco shares were up 70% at 229.04p.
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