Wed, 15 Jan 2025 | BUSINESS SALE
AIM listed specialist software provider Eleco has bought Irish peer PEMAC Software for around £5 million.
UK-based Eleco, which began life as an engineering and lighting equipment company in Essex in 1895, provides software for companies in sectors including construction, maintenance and facilities management.
PEMAC, located in Cork and Dublin, Ireland, provides SaaS Computerised Maintenance and Management Software to over 100 blue-chip international manufacturing companies. These include Coca Cola, Heineken, Wyke Farms and Keppel Data Centres. It has also developed a strong reputation for its ability to support clients in highly regulated sectors, including life sciences and healthcare.
PEMAC had revenues of around £2.3 million and adjusted EBITDA of around £500,000 in the year ending 30 November 2024.
The deal, financed by Eleco's own cash resources, also provides for an additional earn-out consideration of up to £2 million payable in two tranches in 2026 and 2027.
Eleco said the two companies had a shared commitment to "delivering innovative, customer-focused solutions in manufacturing, regulated industries".
Jonathan Hunter, Chief Executive Officer of Eleco, said the deal would enhance its 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," Hunter said. "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."
He added that 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 per cent of manufacturing businesses are seeking to improve work practices.
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