TIDMELCO
RNS Number : 6596M
Elecosoft PLC
17 October 2016
17 Oct 2016
Elecosoft plc
("Elecosoft" or "the Company")
Acquisition of ICON
The Board of Elecosoft announces the acquisition of Integrated
Computing & Office Networking Limited ("ICON") for a total
consideration of GBP2.4 million.
ICON is a leading Software as a Service ("SaaS") provider of
building information and related data management and storage
systems, principally to the UK retail sector. The acquisition is
consistent with Elecosoft's strategy of investment in SaaS
technology to grow its customer reach and strengthen its position
as an international provider of innovative, market-leading visual
software applications.
ICON is a profitable software business with a high profile
blue-chip customer base which includes seven of the top ten UK
retailers, namely, ASDA, Boots, the Central England Co-operative,
John Lewis, Morrisons, Sainsbury's and Waitrose.
The directors of both Elecosoft and ICON are confident that the
combination of ICON's SaaS business with Elecosoft's visualisation,
estimation and project management software will enable the combined
businesses to access new markets, benefit from cross-selling
opportunities and enhance the significant recurring revenue
generated by their respective software solutions.
Background to the acquisition
ICON is a web solutions software development company whose
solutions enable organisations to track and manage the
specifications of a portfolio of properties through a single
platform. All building-related information, from physical fittings
to decorative items, is stored in the cloud-based solution and can
be duplicated and customised as necessary when a new property is
added. At present, the ICON System is used primarily by large
retailers operating numerous properties whilst needing to maintain
a consistent brand.
The Company believes that there are significant opportunities
both to leverage the expertise of ICON's developers in the SaaS
field and to cross sell ICON and Elecosoft's products to
customers.
ICON is based in Market Harborough, Leicestershire, and employs
16 staff. The business reported revenues of GBP0.7 million for the
year to 31 October 2015 and is on track to report revenues of
GBP0.9 million for the year to 31 October 2016. In the year ended
31 October 2015, it generated a normalised pre-tax profit of
GBP0.2m and had net assets of GBP0.3m.
Chris Lovelock, a founder of ICON, will remain a Director of the
company.
Financing
The acquisition will be financed by a fixed term loan of GBP1.8
million, which will be amortised over 4 years at an interest rate
of 2.75 per cent above Barclays base rate and by the issue of
2,222,223 Ordinary Shares of 1p each in Elecosoft ("Ordinary
Shares") at 27p per share.
Seller will not for a period of 12 months, without the prior
written consent of Elecosoft, make any disposal of any
Consideration Shares except through Elecosoft's broker at the
relevant date (appointed by the Buyer in accordance with the AIM
Rules).
The Board of Elecosoft anticipates that the acquisition will be
earnings neutral in the period ending 31 December 2016 and earnings
enhancing thereafter.
Application for Admission
Application has been made for 2,222,223 Ordinary Shares to be
admitted to trading on AIM. Admission is expected to become
effective on 20th October 2016. Following Admission, Elecosoft will
have 77,089,350 Ordinary Shares. All Ordinary Shares shall have
equal voting rights and none of the Ordinary Shares are held in
treasury. The total number of voting rights in the Company
immediately following Admission will therefore be 77,089,350.
John Ketteley, Executive Chairman of Elecosoft plc, said:
"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. It has
a 20-year record of delivering tailored, Internet-based solutions
and has assembled an enviable client list in that period.
I would like to extend a warm welcome to the ICON team. We look
forward to working closely with them as we continue to pursue our
objective of becoming a leading international software provider in
the markets we serve.
Referring recently to ICON Orbit, ICON's browser based BIM model
viewer, Jim Awe, Chief Software Architect at Autodesk Inc. was
quoted as saying:
"For far too long, developers have been forced to sync
associated data back into the original 3D model where it doesn't
really belong. What ICON has done is an awesome demonstration of
the principle of Internet-enabled design data. The data can reside
and be managed in the appropriate place, but is still visible and
accessible in the context of the model."
I believe that the above compliment to ICON's technical
capability from such an eminent source, gives a good indication of
the strategic benefits that we can expect to be felt across the
wider portfolio of Elecosoft products as we work with our new ICON
colleagues."
For the purposes of Article 7 of EU Regulation 596/2014, this
announcement contains inside information.
For further information, please
contact:
Elecosoft plc
John Ketteley (Executive Chairman) Tel: 020 7857 5210
Jonathan Hunter (Group Marketing
and Business Development Director)
finnCap Ltd
Adrian Hargrave / Kate Bannatyne Tel: 020 7220 0500
(Corporate Finance)
Camille Gochez (Corporate Broking)
Redleaf Communications
Rebecca Sanders-Hewett / David Tel: 020 7382 4730
Ison elecosoft@redleafpr.com
/ Susie Hudson
About Elecosoft
Elecosoft is listed on the Alternative Investment Market in
London (AIM: ELCO). It is a specialist international provider of
software and related services to the architectural, engineering,
construction and digital marketing industries from centres of
excellence in the UK, Sweden, Germany and the US. Elecosoft's
market leading software solutions are developed by teams in the
United Kingdom, Sweden and Germany; and its software programs cover
project management, construction site management, estimating,
timber engineering, 3D design and visualisation, and cloud based
digital marketing solutions.
For more information, please visit www.elecosoft.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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