Key Takeaways
- • Eleco plc shareholders approved the £207 million takeover by California-based private equity firm Accel-KKR, which offers 235 pence in cash per share.
- • The offer represents a 74.7% premium to Eleco's closing price the day before the bid was announced.
- • The deal implies an enterprise value of £192.4m, or 20.2 times Eleco's EBITDA for the 12 months ended 31 December 2025 and 31.9 times cash EBITDA.
- • Eleco, a London-listed software provider to the built environment founded in 1895, reported 2025 revenue of £38.8m (up 20%), adjusted EBITDA of £10.2m (up 32%), and 81% recurring revenue.
- • Accel-KKR managing director Maurice Hernandez said the firm looks forward to partnering with the Eleco team to support its next phase of growth.
Summary
Shareholders of Eleco plc have approved a £207 million takeover by Accel-KKR, the private equity firm based in California, according to BusinessCloud, which sourced the report from PropTechDeals. The offer of 235 pence in cash for each share represents a 74.7% premium to Eleco's closing price on the day before the bid was announced. The acquisition values Eleco at approximately £207.6m on a fully diluted basis and implies an enterprise value of £192.4m.
The offer multiples are rich by conventional standards: the enterprise value equals 20.2 times Eleco's EBITDA for the 12 months ended 31 December 2025, and 31.9 times its cash EBITDA over the same period. Accel-KKR stated when the bid was revealed that it had followed Eleco closely for some time, and credited the leadership of Jonathan Hunter, Neil Pritchard and the wider management team for transforming the business from its heritage in building and lighting equipment production into a technology company.
Founded in 1895 and listed on the London Stock Exchange since the start of World War II, Eleco entered built environment software in the early 2000s through a series of acquisitions and divested its remaining building systems and precast concrete businesses in 2013. The company is headquartered in London and operates through the brands Eleco, BestOutcome, Pemac and Eleco Technologies, with centres of excellence in the UK, Ireland, Sweden, Germany, the Netherlands, Romania and the US. Its software supports the building lifecycle from planning and design through construction, fit-out, asset management and facilities management.
Eleco has shifted from perpetual software licences to subscription and SaaS revenues while remaining profitable. Recurring revenues accounted for 81% of total revenues last year, annualised recurring revenue rose 29% to £34.3m, revenue grew 20% to £38.8m, and adjusted EBITDA increased 32% to £10.2m. The company is debt free and held cash of £16.3m.
Maurice Hernandez, managing director of Accel-KKR, said: "Eleco has built a leading construction technology platform with a strong reputation among its customers through its domain expertise, and we look forward to partnering with the Eleco team to build on that foundation and support the company's next phase of growth."
The offer multiples are rich by conventional standards: the enterprise value equals 20.2 times Eleco's EBITDA for the 12 months ended 31 December 2025, and 31.9 times its cash EBITDA over the same period. Accel-KKR stated when the bid was revealed that it had followed Eleco closely for some time, and credited the leadership of Jonathan Hunter, Neil Pritchard and the wider management team for transforming the business from its heritage in building and lighting equipment production into a technology company.
Founded in 1895 and listed on the London Stock Exchange since the start of World War II, Eleco entered built environment software in the early 2000s through a series of acquisitions and divested its remaining building systems and precast concrete businesses in 2013. The company is headquartered in London and operates through the brands Eleco, BestOutcome, Pemac and Eleco Technologies, with centres of excellence in the UK, Ireland, Sweden, Germany, the Netherlands, Romania and the US. Its software supports the building lifecycle from planning and design through construction, fit-out, asset management and facilities management.
Eleco has shifted from perpetual software licences to subscription and SaaS revenues while remaining profitable. Recurring revenues accounted for 81% of total revenues last year, annualised recurring revenue rose 29% to £34.3m, revenue grew 20% to £38.8m, and adjusted EBITDA increased 32% to £10.2m. The company is debt free and held cash of £16.3m.
Maurice Hernandez, managing director of Accel-KKR, said: "Eleco has built a leading construction technology platform with a strong reputation among its customers through its domain expertise, and we look forward to partnering with the Eleco team to build on that foundation and support the company's next phase of growth."
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