LONDON (Alliance News) - Digital construction solutions provider Elecosoft PLC said on Thursday it has acquired maintenance management software company Shire Systems Ltd from Hampshire-based Shiresoft Ltd for GBP6.3 million in cash.
Shire Systems is based in Southampton with its core product Pirana, which at the end of 2017 had around 800 customers.
The GBP6.3 million payment will be funded by borrowings of GBP6 million as part of a five-year fixed term loan of GBP8 million from Barclays Bank, part of Barclays PLC.
The acquisition is expected to extend Elecosoft's software portfolio to asset maintenance management applications for plant and equipment in addition to its early stage project planning software.
"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," said Executive Chairman John Ketteley.
"The acquisition of Shire Systems represents another step towards achieving Elecosoft's objective of developing a comprehensive BIM [building information modelling] 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," Ketteley added.
Shares in Elecosoft were up 9.1% at 82.40 pence on Thursday.
Barclays (BARC)
Elecosoft (ELCO)