April 25 (SeeNews) - UK-based provider of software for the construction sector Eleco said it acquired Romanian software developer group Vertical Digital, comprising companies Vertical Digital and Sons of Coding, for an initial consideration of 1.3 million euro ($1.4 million).
"The acquisition will add critical capabilities to Eleco, including the ability to service and scale its customers by connecting systems and providing technical consulting which will support their digital transformation journeys," the British company said in a filing to the London Stock Exchange last week.
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The deal provides for a potential deferred earnout of up to 250,000 euro payable to the seller in 2026, should Vertical Digital achieve specific performance targets set by Eleco in 2024 and 2025.
Vertical Digital booked a revenue of 1.2 million euro in 2023, Eleco also said.
The Romanian unit of Austria-based Schoenherr acted as legal counsel to Eleco during the deal, the law firm said in a press release on Tuesday.
Eleco was founded in 1895 as a lighting equipment company. It was listed on the London Stock Exchange in 1939.
Vertical Digital was founded in Romania's northwestern city of Oradea in 2017. In 2021, the company opened a subsidiary in Canada.
($=0.9358 euro)