Eleco acquire construction software company Asta
Asta, a major provider of project and resource management software to the construction industry, is to be acquired by Eleco in a deal worth £7.65m.
The deal involves the payment of over £3.2m in cash paid for through Eleco’s existing resources and the remainder through the issue of shares.
Michael McCullen, currently managing director, was one of the original founders of Asta in 1986.
McCullen has seen the company grow into a 54-man operation which, in the year ended in September 30, generated a turnover of £3.1m and profit before taxes of £589,000.
He said “Employing a tight software development discipline and strong customer focus has enabled Asta to increase turnover and profitability significantly over the last three years.
“I am excited about Asta becoming part of Eleco’s Construction Software division which represents the next step in the development of Asta’s business and will enable us to exploit more fully the international potential for Asta’s products.
“On a personal level, I am also looking forward to having a leading role in the combined software operations.”
McCullen is expected to join the Eleco board and will take responsibility for the construction software operations of the firm.
Other member of Asta’s senior management are also expected to join the company.
John Ketteley, executive chairman of Eleco, said: “The acquisition of Asta represents a significant strategic move for Eleco’s Construction Software activities.
“At a stroke, it strengthens our software management and development capability, it dramatically increases our construction software product portfolio and market footprint and provides significant marketing, cross selling and product combination opportunities, particularly in international markets.”
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