TIDMELCO
RNS Number : 9688D
Eleco PLC
27 June 2023
27 June 2023
Eleco Plc
("Eleco", "Group" or the "Company")
Acquisition of BestOutcome
The Board of Eleco Plc (AIM: ELCO), the AIM-listed specialist
software provider for the built environment, is pleased to announce
that it has acquired 100% of Buckinghamshire-based BestOutcome
Limited ("BestOutcome"), a profitable, high quality SaaS business
and leading UK provider of simple, scalable Project Portfolio
Management (PPM) software, for an initial consideration of
GBP4.825m in cash (an adjusted initial value of GBP3.525m on a
cash-and-debt-free equivalent) ("the Acquisition"). The Acquisition
will be exclusively financed by the Company's internal cash
resources.
Strategic Highlights
-- The Acquisition strengthens Eleco's Building Lifecyle
portfolio, representing further progress in Eleco's growth strategy
to enhance its predictable recurring revenue and to increase value
to its shareholders by investing in synergistic software products
and technologies.
-- The Board of Eleco anticipates that the Acquisition will
enhance both annualised recurring revenue and earnings in the
second half of the year ending 31 December 2023 and beyond.
-- BestOutcome's core products PM3 and PM3 Time are used to
manage strategic programmes and multiple portfolio management
projects.
-- BestOutcome's 22 strong team services a nationwide customer
base of over 60 active customers and has a particular strength in
winning public sector business, including the NHS, universities and
county councils. This gives Eleco a greater foothold in the wider
built environment, while also complementing its private sector
exposure.
Transaction Highlights
-- The transaction includes a potential deferred consideration
of GBP0.5m subject to the BestOutcome management team attaining
specific performance targets in 2023 and 2024.
-- This makes the total potential consideration to be GBP5.325m
(an adjusted total potential consideration of GBP4.025m on a
cash-and-debt-free equivalent).
-- BestOutcome reported (SaaS-related) revenues of GBP2.0m for
the year to 31 December 2022, and profit before tax of GBP0.2m,
before alignment with Eleco Group Generally Accepted Accounting
Principles.
-- Unaudited management accounts of BestOutcome for the first
five months of 2023 show revenue of approximately GBP0.9m and
profit before tax of circa GBP0.2m, before alignment with Eleco
Group Generally Accepted Accounting Principles.
-- Cash as at end of May totalled GBP1.3m.
-- B estOutcome will continue to operate under its own brand,
known as 'BestOutcome, an Elecosoft company'.
Jonathan Hunter, Chief Executive Officer of Eleco plc, said:
"The acquisition of BestOutcome represents another milestone in
the development of Eleco as a leading provider of world-class
software solutions to the built environment. The addition of
BestOutcome's simple, well designed, scalable PM3 portfolio
management SaaS software to Eleco's existing software portfolio
will enable Eleco to meet the needs of a diverse audience in the
built environment.
The incumbent directors and owners of BestOutcome have
reinvested profits into building a world-class team and ensuring
that the business is well-governed, achieving certification as a
Great Place to Work(R) Cyber Essentials Plus and ISO27001
accreditation. The investment in research and development, through
doubling its development team over the last few years, makes it
stand out amongst its peers as a highly secure and practical
solution for planning and managing programmes for customers in
public and private sectors.
We look forward to working with our new colleagues as we solve
the challenges of the built environment together".
For the purposes of Article 7 of EU Regulation 596/2014, this
announcement contains inside information.
For further information, please contact:
Eleco plc +44 (0)20 7422 8000
Jonathan Hunter, Chief Executive Officer
-------------------------
Neil Pritchard, Chief Financial Officer
-------------------------
finnCap Limited +44 (0)20 7220 0500
-------------------------
Geoff Nash/ Emily Watts/ Seamus Fricker (Corporate Finance)
-------------------------
Charlotte Sutcliffe / Harriet Ward (ECM)
-------------------------
SEC Newgate UK +44 (0)20 3757 6882
-------------------------
Elisabeth Cowell/Bob Huxford eleco@secnewgate.co.uk
-------------------------
About Eleco plc
Eleco plc is an AIM-listed (AIM: ELCO) specialist international
provider of software and related services to the built environment
through its operating brands Elecosoft and Veeuze from centres of
excellence in the UK, Sweden, Germany, the Netherlands and the
US.
The Company's software solutions are trusted by international
customers and used throughout the building lifecycle from early
planning and design stages to construction, interior fit out, asset
management and facilities management to support project management,
estimation, visualisation, Building Information Modelling (BIM) and
property management.
For further information please visit www.eleco.com .
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END
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