Business
Acquisition of Shire Systems Limited
Acquisition of Shire Systems Limited.
About this update from Eleco Plc
[{"type":"text","content":"\n \nRNS Number : 6567T Elecosoft PLC 05 July 2018 \n\n05 July 2018\n \nElecosoft plc\n(\"Elecosoft\", the \"Company\")\n \nAcquisition of Shire Systems Limited\nThe 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 £6.3m in cash; comprising an enterprise value of £5.1m on a cash and debt free basis, and an estimated £1.2m net cash, subject to review of the completion accounts and working capital.\nThe 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.\nShire 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.\n \nWe extend a warm welcome to the Shire Systems team who bring extensive knowledge and experience to the Elecosoft group.\n \nThe 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. \n \nFinancial Highlights\n \nShire Systems reported revenues of £1.9m for the year to 31 December 2017, and profit before tax of £0.7m, adjusted to add back £0.3m of exceptional vendor remuneration. Net assets reported at 31 December 2017 were £1.1m. Unaudited management accounts of Shire Systems for the first five months of 2018 show revenue of £1.0m and profit before tax of £0.4m, after adjusting for revenue deferrals to align with Generally Accepted Accounting Principles. The Board of Elecosoft anticipates that the acquisition ...