Accel-KKR to buy UK's Eleco in £207.6M software takeover
What's the deal? UK building-software firm ElecoDealroom has a profile for this one. Try Dealroom → has agreed to a recommended all-cash takeover by Avocet BidcoDealroom has a profile for this one. Try Dealroom →, an entity backed by private equity firm Accel-KKRDealroom has a profile for this one. Try Dealroom →, in a deal valuing the company at about £207.6 million. Shareholders will receive 235 pence per share — a 74.7% premium to Eleco's 134.5 pence close on September 9.
What each side brings: Eleco, based in London, sells software and services to the built environment through brands including BestOutcomeDealroom has a profile for this one. Try Dealroom →, PemacDealroom has a profile for this one. Try Dealroom → and Eleco TechnologiesDealroom has a profile for this one. Try Dealroom →. Its tools have been used on projects such as The Shard, the Warsaw Metro extension and Hong Kong International Airport. Accel-KKR is a private equity firm with more than $23 billion in cumulative capital commitments.
Why now? Eleco's board said the offer lets shareholders realise full value that would be hard to achieve on London's AIM market, where the stock trades with limited liquidity. It also flagged the rising cost of investing in product innovation, cloud platforms and artificial intelligence across the software sector.
The numbers: For the year ended December 31, 2025, Eleco reported revenue of £38.8 million, up 20% from £32.4 million, and adjusted EBITDA of £10.2 million, up 32%. Recurring revenue made up 81% of the total, and the company held £16.3 million in cash with no debt.
What's the endgame? Accel-KKR said it can support Eleco's product development, SaaS transition and AI rollout with extra capital and resources. Bidco does not intend material headcount cuts or changes to employment terms, and said existing rights, including pensions, will be safeguarded.
What could go wrong? The deal runs through a court-sanctioned scheme of arrangement, requiring shareholder and court approval. Directors holding roughly 0.5% of shares have committed to back it, and holders of 45.2% have signalled support through irrevocable undertakings and letters of intent.
The signal: The premium — implying roughly 20.2 times Eleco's 2025 EBITDA — underlines how private equity continues to target profitable, recurring-revenue software firms undervalued on public markets. Chair Mark Castle said Eleco has "successfully transformed from a building products business to a specialist provider of software and related services to the built environment." Interim results are due September 15.
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