Eleco PLC (AIM:ELCO) shares rose 5% to 78.78p after it snapped up BestOutcome, a profitable UK-based provider of project portfolio management software, for up to £5.3mln.
It will shell out £4.825mln in cash on completion for the Buckinghamshire-based outfit, with the rest depending on performance targets in 2023 and 2024.
The AIM-listed firm said the acquisition will increase revenues and earnings in the current year, while also strengthening its Building Lifecyle portfolio, with BestOutcome’s software-as-a-service business growing its recurring revenues and providing “synergistic” software products and technologies.
BestOutcome's core products PM3 and PM3 Time are used to manage strategic programmes and multiple portfolio management projects, providing ‘real time’ visibility of how employees and contractors are spending their time.
For the first five months of 2023, the acquisition made unaudited revenues of roughly £0.9mln and profit before tax of around £0.2mln, which Eleco noted was before alignment with its accounting principles.