Eleco Plc has announced the acquisition of BestOutcome Limited for an initial consideration of £4.825m in cash
The acquisition will be exclusively financed by the company’s internal cash resources.
The acquisition strengthens Eleco’s Building Lifecyle portfolio, representing further progress in Eleco’s growth strategy.
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 portfolio management projects
BestOutcome’s 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.
The transaction includes a potential deferred consideration of £0.5m subject to the BestOutcome management team attaining specific performance targets in 2023 and 2024. This makes the total potential consideration to be £5.325m.
BestOutcome reported (SaaS-related) revenues of £2.0m for the year to 31 December 2022, and profit before tax of £0.2m, 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 £0.9m and profit before tax of circa £0.2m, before alignment with Eleco Group Generally Accepted Accounting Principles.
Eleco’s acquisition of BestOutcome will enable the company to meet the needs of a diverse audience in the built environment
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® 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”.
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