Eleco accepts GBP200 million takeover offer from Accel-KKR

Eleco PLC on Thursday said it has accepted a takeover offer from funds managed by private equity firm Accel-KKR Co LLC.

Shares in London-based Eleco, a software provider focused on the construction and built environment sectors, surged 70% to 229.00 pence per share on Thursday morning.

The all-cash offer came from Avocet Bidco Ltd, an acquisition vehicle owned by AKKR Fund VII GP LP, a buyout fund managed by Accel-KKR.

Accel-KKR is a technology-focused private equity firm founded in 2000 by Accel Partners LP and Kohlberg Kravis Roberts & Co.

Avocet Bidco offered 235 pence per each Eleco share. The offer values Eleco's share capital at around £207.6 million, and implies an enterprise value of £192.4 million.

Eleco said the offer represents around 20 times its annual earnings before interest, tax, depreciation and amortisation. Eleco's adjusted Ebitda for 2025 was £10.2 million, the company reported in April.

The takeover is conditional on approval by a majority of shareholders. It currently has the support of shareholders representing 45% of Eleco's share capital, Eleco said. The acquisition is expected to be completed in the first quarter of 2027.

Eleco's directors said they considered the terms of the acquisition "fair and reasonable." They welcomed Accel-KKR's intention not to reduce headcount or change conditions for employees and management.

Non-Executive Chair Mark Castle said: "The Eleco board has unanimously concluded that they intend to recommend this offer, which provides a compelling return for our shareholders and is in the best interests of shareholders and wider stakeholders."

Accel-KKR said it believed it can "support Eleco in its continued product development, software as a service transition and artificial intelligence implementation to maximise its market opportunity by providing additional resources and capital to enable both organic and inorganic growth, as well as the expertise and operational and strategic support brought through its extensive experience in helping technology businesses expand internationally."

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