Elecosoft Buys Building Information Software Firm ICON (ALLISS)

LONDON (Alliance News) - Construction software company Elecosoft PLC on Monday said it has agreed ...

Alliance News 17 October, 2016 | 8:24AM
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LONDON (Alliance News) - Construction software company Elecosoft PLC on Monday said it has agreed to pay GBP2.4 million to acquire Integrated Computing & Office Networking Ltd, with the purchase to be financed by a new loan and a share issue.

Leicestershire-based ICON makes building information and related data management systems for retail clients in the UK. It counts the likes of pharmacy chain Boots and grocers Wm Morrison Supermarkets PLC and J Sainsbury PLC amongst its clients.

Elecosoft said the acquisition is in line with its push to shift its focus to software-as-a-service contracts and said there is a significant opportunity for cross-selling across the two businesses.

In the year to the end of October 2015, ICON made GBP700,000 in revenue, which is set to rise to around GBP900,000 in the year to October 2016.

The deal will be financed by a new GBP1.8 million fixed-term, four-year loan from Barclays, carrying an interest rate of 2.75% over the base rate.

In addition, Elecosoft will issue 2.2 million shares at 27.00 pence per share to raise another GBP594,000 to finance the deal. Shares in the company were down 0.9% to 27.00p Monday morning.

"I am pleased to announce the acquisition of ICON, which represents a significant milestone in the development of Elecosoft. ICON is an accomplished and well-established UK software business with excellent SaaS technology and strong domain knowledge," said Elecosoft Executive Chairman John Ketteley.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

Copyright 2016 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Elecosoft PLC 71.50 GBX -0.69 -

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