REG - Eleco PLC - Acquisition of PEMAC

ElecoAnnouncement

14/01/2025 07:00

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RNS Number : 2346T  Eleco PLC  14 January 2025

 14 January 2025

Eleco plc

 

("Eleco", "Group" or the "Company")

 

Acquisition of PEMAC

The Board of Eleco plc (AIM: ELCO), the specialist software provider for the
built environment, is pleased to announce that its wholly-owned subsidiary
Elecosoft Ltd has acquired 100% of the share capital of PMI Software Ltd
("PEMAC") from principal seller Pemac Software Ltd (and associated private
individuals sellers) for an initial consideration of c.€6.0m (subject to
adjustment via a customary completion accounts mechanism), exclusively
financed by the Company's own cash resources.  The transaction terms also
provide for additional earn-out consideration of up to €2.4m payable in two
tranches in 2026 and 2027, subject to the PEMAC business attaining performance
targets agreed with Eleco plc during the financial years ending 31 December
2025 and 31 December 2026.

 

Details on PEMAC

 

PEMAC, located in Cork and Dublin, Ireland, is a recognised leader in
providing SaaS Computerised Maintenance and Management Software ("CMMS") and
specialist services in the market, used by over 100 blue-chip international
manufacturing companies.  Notable customers include Coca Cola, Gyproc,
Heineken, Wyke Farms, Keppel Data Centres, Stryker, SteriPack Group, LumiraDx,
and Amgen.  PEMAC has developed a strong reputation for its ability to
support clients in highly regulated sectors, including life sciences and
healthcare, through its robust software capabilities tailored to meet
industry-specific regulatory requirements.

 

Based on unaudited figures from PEMAC, for the year ended 30 November 2024,
PEMAC recognised approximately €2.7m in revenue and Adjusted EBITDA of
€0.6m.

 

The acquisition of PEMAC by Eleco plc highlights their shared commitment to
delivering innovative, customer-focused solutions in manufacturing, regulated
industries. PEMAC's expertise and proven capabilities will complement the
Group's existing ShireSystem Computerised Maintenance Management Software
("CMMS"), enhancing the overall offering to support customers' evolving needs.
PEMAC and ShireSystem are committed to maintaining the exceptional standards
of service and support their customers rely on. Over time, both organisations
will collaborate to deliver technological advancements, ensuring their
customers benefit from enhanced solutions.

 

Jonathan Hunter, Chief Executive Officer of Eleco, commented:

"I am delighted to welcome PEMAC to the Group, which will enhance Eleco's
asset and maintenance management capabilities.  Eleco's asset maintenance
customers have shown substantial growth in recent years and together with
PEMAC, Eleco is now even better positioned to enhance productivity, safety and
compliance for its customers through digital transformation of their
processes.

We are impressed with the calibre of customers which PEMAC services, as well
as the knowledge, experience and talent of our new colleagues.  In addition,
we are pleased that the operational management team of PEMAC will remain with
the business and is committed to supporting our joint  growth ambitions.

Strengthening Eleco's CMMS capabilities, competitiveness and presence in
Ireland and the UK will help maximise opportunities in a fast-growing market,
where a recent survey found 88%(1) of manufacturing businesses are seeking to
improve work practices.  Together, we look forward to our future with
confidence."

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the Market
Abuse Regulation (EU) No.596/2014 as it forms part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended ("UK MAR").

(1)  Survey source: Ibec 'Manufacturing in Ireland 2023' report, November
2023

For further information, please contact:

 Eleco plc                                                     +44 (0)20 7422 8000
 Jonathan Hunter, Chief Executive Officer
 Neil Pritchard, Chief Financial Officer
 Cavendish Capital Markets Limited                             +44 (0)20 7220 0500
 Geoff Nash/ Seamus Fricker/ Elysia Bough (Corporate Finance)
 Louise Talbot (Sales) / Harriet Ward (ECM)

 

About Eleco plc

Eleco plc is an AIM-listed (AIM: ELCO) specialist international provider of
software and related services to the built environment through its operating
brands Elecosoft, BestOutcome, Vertical Digital and Veeuze from centres of
excellence in the UK, Ireland, Sweden, Germany, the Netherlands, Romania and
the USA.

The Company's software solutions are trusted by international customers and
used throughout the building lifecycle from early planning and design stages
to construction, interior fit out, asset management and facilities management
to support project management, estimation, visualisation, Building Information
Modelling (BIM) and property management.

For further information please visit www.eleco.com
(http://www.elecosoft.com/) .

 

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