Private equity firm KKR has reached an agreement to acquire AIM-listed construction software company Eleco for £207.6m. This deal, made in partnership with venture capital firm Accel, has received backing from Eleco's board.
Shareholders in Eleco are in line for a payout of 235p per share. This represents a 74.7 per cent premium compared to the previous session's closing stock price of 134p. Eleco shares, which trade on London's junior stock market, had closed down 18 per cent for the last year on Wednesday.
Investors holding 45.2 per cent of Eleco's shares have already committed their support for the takeover. The acquisition is targeted to be completed by early 2027, pending court approvals.
Eleco reported revenue growth of eight per cent to £19.9m in its July trading update. This was driven by a 14 per cent increase in recurring subscription and software maintenance income, reaching £16.9m. The company provides software and related services for architectural, engineering, and construction industries.