Eleco offloads Arcon architectural software business

20th Feb 2023 12:56

(Sharecast News) - Construction software specialist Eleco announced the sale of its wholly-owned subsidiary Eleco Software GmbH on Monday, including the Germany-based Arcon architectural CAD business.

The AIM-traded firm said the sale was agreed with Austrian architectural software business FirstInVision for total consideration of €0.6m (£0.53m) in cash.

It said the sale of Arcon was in line with its strategy to focus on its core customer segments and businesses.

The transaction included an initial payment of €0.55m to be made immediately on completion, with additional tranches of €25,000 each to be paid on two occasions over the next two years.

There were no performance conditions attached to the deferred payments.

"This transaction reinforces our strategy to focus on our core businesses as we successfully transition these businesses on the software-as-a-service (SaaS) journey," said chief executive officer Jonathan Hunter.

"It brings greater certainty for the Arcon business, staff and customers going forward; and, also frees up valuable management time for application to other parts of the business and acquisitions."

At 1227 GMT, shares in Eleco were up 1.08% at 83.9p.

Reporting by Josh White for Sharecast.com.