Accel-KKR said it will acquire construction-software provider Eleco plc for £207.6 million in cash, valuing the London-headquartered company at a significant premium to its recent trading levels.
The offer, priced at 235 pence per share, represents a 74.7% premium to Eleco's closing price of 134.5 pence on Sept. 9 and a 77.7% premium to the stock's 12-month volume-weighted average price, the companies said.
The transaction, to be carried out through Avocet Bidco Ltd — a vehicle to be owned by funds managed by Accel-KKR — implies an enterprise value of £192.4 million. That values Eleco at roughly 20.2 times its adjusted EBITDA for the 12 months ended Dec. 31, 2025.
Eleco reported revenue of £38.8 million for that period, up 20%, and adjusted EBITDA of £10.2 million, a 32% increase year over year.
Shareholders holding 45.2% of Eleco's shares have provided irrevocable undertakings supporting the deal, according to the companies.
Eleco's board unanimously recommends shareholders vote in favor, saying the acquisition will deliver good value. The deal is expected to close during or before the first quarter of 2027, subject to shareholder approval and standard regulatory and closing conditions.
It will be implemented via a court-sanctioned scheme of arrangement under Part 26 of the UK Companies Act 2006.
N.M. Rothschild & Sons acted as financial adviser to Accel-KKR, while Stephens Europe served as lead financial adviser to Eleco. Cavendish Capital Markets was Eleco's nominated adviser and broker.
Accel-KKR manages over $23 billion in cumulative capital commitments and focuses on mid-market software and technology-enabled services companies. Eleco provides software and related services to the built environment sector and operates across the UK, Ireland, Sweden, Germany, the Netherlands, Romania and the United States.
