KKR and Accel agree £207.6m recommended cash takeover of AIM-listed construction software firm Eleco
KKR, the US private equity giant, has struck a deal to acquire Eleco, an AIM-listed construction software business, in partnership with venture capital firm Accel, valuing the company at £207.6m. The offer of 235p per share represents a 74.7% premium over Eleco's closing stock price of 134p on the session before announcement, a striking uplift for a company whose shares had fallen 18% over the prior year and hit a low of 105p during that period. Eleco shareholders holding 45.2% of the company's shares have already irrevocably pledged their support for the deal, giving the bid a strong early majority. The transaction is targeted to close by early 2027, subject to court approvals consistent with the public takeover process for AIM companies. Eleco provides software and related services for the architectural, engineering and construction industries, including niche verticals such as timber frame and staircase manufacturing. The business is notable for the strength of its recurring revenue model: subscription and software maintenance income grew 14% to £16.9m in the six months to July 2026, driving total revenue up 8% to £19.9m, while annual recurring revenue (predictable yearly client billings) reached a record £35.5m, representing 85% of total revenue. The deal is the latest in a pattern of private equity and institutional buyers sweeping AIM-listed technology companies off the London market, continuing a trend of premium bids for subscription-model software businesses with predictable cash flows.
Why this matters
The 74.7% premium underscores how undervalued subscription-software businesses have become on AIM relative to private market valuations, and gives KKR and Accel access to a niche but defensible position in construction tech at an attractive entry point. The transaction is part of a broader wave of take-private deals picking off London-listed technology companies, raising ongoing questions about whether the UK public markets are retaining the right businesses. With 45.2% of shareholders already locked in, the deal faces little realistic opposition, and the court approval process required for an AIM scheme of arrangement will set the pace to early 2027.
On the Ground
The transaction activates public M&A, private equity, and corporate advisory practices. On the buyer side, the deal requires a scheme of arrangement under English company law, generating work across corporate, financing, and regulatory clearance teams. Named advisers are not identified in the source, so the specific firms involved remain unconfirmed. A trainee on this matter would assist with drafting the court process timetable and Companies House filings, preparing the scheme circular verification notes, organising the completion bible, and cross-referencing the irrevocable undertakings against the share register.
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“Why might KKR have chosen a scheme of arrangement rather than a contractual takeover offer, and what are the key legal steps between now and closing in early 2027?”
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