UK's Eleco pays EUR 1.55 mln for Romanian software developer

Eleco, a specialized software supplier listed on the Alternative Investment Market of the London Stock Exchange, has acquired the Vertical Digital group of companies, consisting of Vertical Digital and Sons of Coding, software companies based in Oradea and Timisoara.

Vertical Digital and Sons of Coding were acquired for an initial sum of EUR 1.3 million and earn-out [contingent value] of EUR 250,000.

The two firms have a proven track record of delivering agile and innovative software development, technical consulting, and development solutions to a wide range of European and multinational end customers, including Lufthansa Technik, PwC, VW Financial Services, and Zoopla.

Eleco is an international specialist provider of software and related services for the built environment through its brands Elecosoft, BestOutcome, and Veeuze, from centers of excellence in the UK, Sweden, Germany, the Netherlands, the USA, and, now, Romania.

The acquisition will enhance Eleco's capabilities, including serving and scaling its customers by connecting systems and providing technical consulting that will accelerate its digital transformation. The acquisition will also allow for an increase in internal research and development capacity, which will further improve product recovery times.

The transactions were brokered by Adnumus, a Romanian M&A consulting company.

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