Eleco buys Kivue: price tag, deal mix and why this matters
Eleco plc has picked up Kivue Limited, a UK-based Project Portfolio Management (PPM) software provider, for an enterprise value of £2.3 million. The consideration is split between approximately £1.84 million in cash and approximately £0.46 million in Eleco shares.
PPM, in plain English, is software that helps organisations oversee multiple projects at once – making sure resources, risks and priorities are managed at a portfolio level rather than project by project. Kivue’s cloud platform, Perform, is aimed at giving instant, visual insights to both project teams and senior executives.
Strategically, this slots neatly into Eleco’s “Building Lifecycle” software portfolio and complements BestOutcome’s PM3 tool already in the Group. Management says Kivue broadens reach into senior managers and the C-suite for larger enterprise projects – a useful adjacency if you’re aiming up-market.
What Kivue brings: the Perform PPM platform and enterprise credentials
Kivue is based in Reading and sells an ISO-certified and Cyber Essentials accredited cloud platform. That matters for enterprise and public sector buyers who expect robust security and governance credentials out of the box.
Its customer list reads well for a company of this size: London City Airport, Aon, Bentley, Virgin Atlantic and The Government of Jersey are all named. The business has been primarily private-sector focused, with some public sector wins too.
Importantly, Eleco says Kivue’s operational management team – including its principal founder – will stay on. Retaining product and customer knowledge reduces integration risk and keeps momentum during the handover.
Financial snapshot: revenue, profitability and implied valuation
On unaudited figures for the 12 months to 31 October 2025, Kivue delivered approximately £1.5 million revenue and approximately £0.2 million Adjusted EBITDA (a measure of profit before interest, tax, depreciation and amortisation, adjusted for one-offs).
On those numbers, the deal implies:
- c.1.5x enterprise value to revenue (£2.3m / £1.5m)
- c.11.5x enterprise value to Adjusted EBITDA (£2.3m / £0.2m)
- c.13% Adjusted EBITDA margin (£0.2m / £1.5m)
For a PPM SaaS provider with blue-chip references, that pricing looks reasonable rather than punchy. The multiple suggests Eleco expects to drive growth and operating leverage by plugging Kivue into its wider go-to-market and product family.
Share issuance, dilution and timetable
As part of the consideration, the vendors will receive 337,363 new Eleco ordinary shares. Application has been made for admission of these shares to trading on AIM, expected on 13 February 2026.
Post-admission, Eleco will have 84,139,760 ordinary shares in issue, all with equal voting rights and none held in treasury. The new shares equate to roughly 0.4% of the enlarged share count – a very modest dilution for existing holders. Using the circa equity element of £0.46 million, the implied issue price is around £1.36 per share (indicative, based on the “c.” values disclosed).
How it fits with Eleco’s PPM strategy
Eleco already owns BestOutcome’s PM3, which targets Project Management Offices (PMOs) and project managers running strategic programmes and multiple portfolios. Kivue’s Perform is pitched as intuitive and agile, and Eleco specifically calls out its ability to reach senior managers and the C-suite on larger enterprise projects.
In practice, that suggests two things:
- Clearer top-down visibility: Perform’s automated, visual portfolio insights may resonate with exec teams who want dashboards and governance without wading into task-level detail.
- Complementary positioning: With PM3 for PMOs and Perform for senior stakeholders, Eleco can cover more of the decision-making chain, potentially improving win rates and upsell paths.
Key deal numbers at a glance
| Acquisition enterprise value | £2.3 million |
| Consideration mix | c£1.84 million cash, c£0.46 million equity |
| New shares to vendors | 337,363 ordinary shares |
| Admission to AIM | Expected 13 February 2026 |
| Total shares post-admission | 84,139,760 ordinary shares |
| Kivue revenue (12 months to 31 Oct 2025) | c£1.5 million |
| Kivue Adjusted EBITDA | c£0.2 million |
Positives and watch-outs for investors
What looks positive
- Strategic fit: Directly complements PM3 and broadens Eleco’s reach into senior decision-makers.
- Customer credibility: Well-known brands and a sovereign customer lend confidence in product quality.
- Security credentials: ISO certification and Cyber Essentials accreditation are valuable in enterprise and public sector bids.
- Low dilution: Around 0.4% share issuance is small, with most consideration in cash.
What to keep an eye on
- Execution and integration: Ensuring Perform and PM3 sit clearly in the portfolio without confusing buyers.
- Margin trajectory: Kivue’s c.13% Adjusted EBITDA margin has room to improve if Eleco can scale sales efficiently.
- Cross-sell proof points: Evidence of larger enterprise wins or broader deployments will validate the “reach into C-suite” thesis.
My take: a sensible, targeted bolt-on
This is a tidy, strategically coherent bolt-on for Eleco. The price looks fair against Kivue’s scale, the dilution is negligible, and the customer roster suggests the product resonates with demanding buyers. With the founder and management team staying on, Eleco gives itself a better chance of maintaining product momentum while integrating commercial operations.
The real test will be how Eleco positions Perform alongside PM3 to maximise coverage from PMOs through to the boardroom. If they land that positioning and unlock cross-sell, the earnings contribution should improve from today’s base. For now, it reads as a pragmatic step in building a fuller PPM suite within the wider building lifecycle strategy.
