Eleco PLC on Tuesday said it acquired 100% software-as-a-service business and provider of project portfolio management software BestOutcome Ltd for an initial £4.8 million.
Eleco is an AIM-listed London-based specialist provider of software and related services to the built environment through its operating brands Elecosoft and Veeuze.
Eleco said the acquisition will be financed by its internal cash resources. The transaction includes a potential deferred consideration of £500,000 subject to performance targets being achieved by BestOutcome in 2023 and 2024.
The company added it expects the purchase to enhance both its annualised recurring revenue and earnings in the second half of 2023 and beyond.
BestOutcome will continue to operate under its own brand.
Eleco Chief Executive Officer Jonathan Hunter said: ‘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.
‘We look forward to working with our new colleagues as we solve the challenges of the built environment together’.
Shares in Eleco were up 4.5% at 78.34 pence each in London on Tuesday midday.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
