Shares in Elecosoft (ELECO) were lifted a tenth on the news that it has bought Shire Systems, a provider of computerised maintenance management software, for £6.3m. Shire Systems’ software has been used in the upkeep of British landmark buildings including Tower Bridge. A nice fit for Elecosoft, whose own construction software helped with the building of London’s Shard.
The purchase of Shire extends Elecosoft’s software portfolio beyond its early-stage project management and construction applications, into the ongoing lifecycle management of buildings and facilities. Shire reported sales of £1.9m for the year to December 2017 and adjusted pre-tax profits of £0.7m. Elecosoft’s management expects it to be earnings enhancing in the second half of this year.
The transaction will be financed by a new £8m fixed-term loan from Barclays, into which Elecosoft’s existing borrowings of £2m will also be incorporated.
