Eleco plc (LON: ELCO), the AIM-listed construction-software group, has agreed to a recommended £207.6m all-cash takeover by US private equity firm Accel-KKR. The board unanimously backed the 235p-a-share offer, and shares surged in response.
Eleco traded at 228.57p on Thursday morning, up 69.94% from Wednesday’s close of 134.5p, having moved between 226p and 230p. The stock sits just below the 235p offer price as the market prices in deal completion risk and timing.
Accel-KKR, acting through bid vehicle Avocet Bidco Limited, will take Eleco private via a Part 26 scheme of arrangement requiring 75% approval at a Court Meeting and General Meeting plus court sanction. 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 deal is expected to complete during or before the first quarter of 2027.
The 235p offer represents a 74.7% premium to Wednesday’s undisturbed close and an 86.0% premium to the three-month volume-weighted average price of 126.3p, a level the board said undervalued Eleco’s shift toward recurring software revenue. Eleco, which supplies planning, scheduling and cost-management software across the construction lifecycle, employs 316 people in eight countries. Mark Castle, Eleco’s Non-Executive Chair, said the company “has successfully transformed from a building products business to a specialist provider of software and related services to the built environment” and that the offer “provides a compelling return for our shareholders”.
Shareholders representing 45.2% of Eleco’s issued share capital, including Allen & Co and the Ketteley family at 23.4% on a binding basis, have already committed to support the deal. With shares trading close to the 235p cash offer, the remaining gap reflects the time and conditions still needed before the scheme completes.