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