Elecosoft acquires management software provider for £6.3m

The AIM-listed company said the acquisition is an advancement in its strategy of investing in synergistic software products and technologies to extend its software portfolio beyond early stage project planning, design and construction applications, to asset maintenance management applications.

Shire Systems services a nationwide customer base with its Pirana product, which boasted over 800 active customers at the end of 2017.

The Southampton based firm reported revenues of £1.9m for the year to 31 December 2017, and profit before tax of £0.7m, adjusted to add back £0.3m of exceptional vendor remuneration.

John Ketteley, executive chairman of Elecosoft, said: "The addition of Shire Systems computerised maintenance management software to Elecosoft's existing software portfolio will enable Elecosoft to provide construction companies and property investors with a CMMS solution."

The £6.3m consideration comprises an enterprise value of £5.1m on a cash and debt free basis, and an estimated £1.2m net cash, subject to review of the completion accounts and working capital.

"The acquisition of Shire Systems represents another step towards achieving Elecosoft's objective of developing a comprehensive BIM led program of co-ordinated software applications for use in each stage of a building's life cycle, both before and after completion of the build phase," said Ketteley.

As of 1103 BST, Elecosoft’s shares were up 9.27% at 82.50p.