Elecosoft PLC Acquisition of Shire Systems Limited (6567T)
July 05 2018 - 1:00AM
UK Regulatory
TIDMELCO
RNS Number : 6567T
Elecosoft PLC
05 July 2018
05 July 2018
Elecosoft plc
("Elecosoft", the "Company")
Acquisition of Shire Systems Limited
The Board of Elecosoft announces the acquisition of Shire
Systems Limited ("Shire Systems"), a profitable leading UK provider
of computerised maintenance management software (CMMS), from
Shiresoft Ltd, for a total consideration of GBP6.3m in cash;
comprising an enterprise value of GBP5.1m on a cash and debt free
basis, and an estimated GBP1.2m net cash, subject to review of the
completion accounts and working capital.
The acquisition is a significant advancement in Elecosoft's
successful strategy of investing in synergistic software products
and technologies to strengthen its construction software portfolio.
It will extend Elecosoft's software portfolio beyond early stage
project planning, design and construction applications, to asset
maintenance management applications for plant and equipment and
building life cycle management.
Shire Systems is based in Southampton from where it services a
nationwide customer base. Its core product is Pirana, and as at the
end of 2017 it boasted over 800 active customers and organisations
engaged in a diverse range of industries.
We extend a warm welcome to the Shire Systems team who bring
extensive knowledge and experience to the Elecosoft group.
The Board of Elecosoft is confident that Shire Systems' asset
maintenance and management expertise together with Elecosoft's BIM
industry expertise and construction data storage capability will
provide significant opportunities for the development of new
software applications in the post construction phase of the life of
a building.
Financial Highlights
Shire Systems reported revenues of GBP1.9m for the year to 31
December 2017, and profit before tax of GBP0.7m, adjusted to add
back GBP0.3m of exceptional vendor remuneration. Net assets
reported at 31 December 2017 were GBP1.1m. Unaudited management
accounts of Shire Systems for the first five months of 2018 show
revenue of GBP1.0m and profit before tax of GBP0.4m, after
adjusting for revenue deferrals to align with Generally Accepted
Accounting Principles. The Board of Elecosoft anticipates that the
acquisition will be earnings enhancing in the second half of the
year ending 31 December 2018.
The acquisition will be financed by incremental borrowings of
GBP6m as part of a new 5 year fixed term loan of GBP8m from
Barclays Bank, which will provide the necessary finance to
accommodate the GBP5.1m acquisition of Shire Systems on a cash free
debt free basis, and the consolidation of Elecosoft's existing
borrowings of GBP2m into the new Facility.
John Ketteley, Executive Chairman of Elecosoft plc, said:
"The acquisition of Shire Systems represents another significant
milestone in the development of Elecosoft as a leading provider of
co-ordinated BIM led software systems for the construction
industry. The addition of Shire Systems computerised maintenance
management software to Elecosoft's existing software portfolio will
enable Elecosoft to provide construction companies and property
investors with a CMMS solution.
The acquisition of Shire Systems represents another step towards
achieving Elecosoft's objective of developing a comprehensive BIM
led program of co-ordinated software applications for use in each
stage of a building's life cycle, both before and after completion
of the build phase."
For the purposes of Article 7 of EU Regulation 596/2014, this
announcement contains inside information.
**Ends**
For further information, please contact:
Elecosoft plc Tel: +44 (0)20 7422 8000
JHB Ketteley, Executive Chairman
Jonathan Hunter, Chief Operating Officer
Simon Morgan, Finance Director
finnCap Ltd Tel: +44 (0)20 7220 0500
Adrian Hargrave / Kate Bannatyne (Corporate Finance)
Camille Gochez (Corporate Broking)
Redleaf Communications Tel: +44 (0)20 3757 6880
Elisabeth Cowell / Fiona Norman
About Elecosoft plc
Elecosoft is a specialist international provider of software and
related services to the Architectural, Engineering, Construction
and Owner-Operator industries and digital marketing industries from
centres of excellence in the UK, Sweden, Germany and the US.
Elecosoft's market leading software solutions are developed by
teams in the United Kingdom, Sweden and Germany; and its software
solutions cover project management, construction site management,
estimating, timber engineering, 3D design and visualisation, and
cloud based digital marketing solutions. Elecosoft is listed on the
Alternative Investment Market in London (AIM: ELCO).
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END
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