Construction software provider Eleco plc has signed a £1m licensing agreement to market Swedish-based Consultec’s timber design and engineering software in the UK.
Eleco has also entered into an option agreement to acquire the Consultec Group for £2m in cash plus £3.7m in Eleco shares.
The company regards the agreement as key in its strategy of achieving critical mass in the developing market for design and procurement software for the construction sector.
Consultec supplies design, estimating, on-site management and timber engineering software across Scandinavia, with more than 1,000 customers in the Swedish construction market.
Its Staircon stair design and production program has already been installed by manufacturers accounting for more than 60% of wood stair production in Sweden. It also has a glulam program, developed in conjunction with the Nordic Wood Project, an initative by the governments of Sweden, Norway and Finland.
Eleco aims to translate Consultec software into English following acquisition, prior to marketing in the UK and North America.
Consultec, which is headquartered in Skellefteå and has 53 employees, recorded pre-tax profits of £199,000 on turnover of £3.5m in the year ending December 31, 2001.
Following the acquisition, Eleco’s software interests will include Consultec, MBA Computing and Forma Communications.
