Eleco, the AIM-listed provider of software and related services to the built environment, has agreed to a recommended all-cash takeover by Accel-KKR at 235p per share.
The offer values Eleco's fully diluted share capital at approximately £207.6 million and implies an enterprise value of £192.4 million.
That represents a premium of 74.7% to Eleco's closing price of 134.5p on 9 September, and 89.9% to the six-month volume-weighted average price.
It implies a multiple of 20.2 times Eleco's EBITDA and 31.9 times its Cash EBITDA for the year ended 31 December 2025, a period in which revenue grew 20% to £38.8 million and Adjusted EBITDA rose 32% to £10.2 million.
Eleco has been transformed from a legacy building products manufacturer into a subscription-led software business, with recurring revenue reaching 81% of the total last year; annualised recurring revenue hit a fresh record of approximately £35.5 million at 30 June, alongside 15% organic revenue growth in the first half.
Eleco's chairman, Mark Castle, said the 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."
Accel-KKR managing director Maurice Hernandez said the firm "will build on that foundation and support the company's next phase of growth."
Shareholders holding 45.2% of Eleco's shares, including directors, Allen & Co, the Ketteley family and several institutional holders, have given irrevocable undertakings or letters of intent to back the deal.
Completion is expected during or before the first quarter of 2027, with Eleco's interim results due on 15 September.
News Intelligence what this means for the company
Accel-KKR has agreed to acquire AIM-listed Eleco for £207.6m (235p/share), a 74.7% premium to the pre-announcement close. The deal values the subscription-led construction software provider at 20.2x EBITDA on 2025 results (revenue £38.8m, up 20%; Adjusted EBITDA £10.2m, up 32%), with recurring revenue at 81% of total and annualised recurring revenue of £35.5m as of June. Completion is expected in Q1 2027, subject to shareholder approval and court sanction; 45.2% of shares are already committed via irrevocable undertakings.
For Eleco shareholders, the offer closes a public-market exit at a material premium to recent trading. For prospective acquirers or competitors, the 20.2x EBITDA multiple on a high-growth, recurring-revenue software business sets a valuation benchmark for the built-environment software segment.
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