€3.45m acqn of VR/AR visualisation expert
How do the world’s best interior designers create their perfect homes? Talent plays a big factor, however they also use top notch visualisation software to quickly & easily modify a property’s layout, aesthetics and ambiance. Enter ‘Active Online Gmbh’ based in Wesel, NW Germany and employing 29 staff. Its “cutting-edge†software allows consumers & homeowners to do exactly this. Swapping out the furniture, curtains & flooring, alongside changing the décor, wall colours, light fittings, fabrics & windows. All at the touch of a button in rich HD/3D graphics.Not only can gains be made out of the takeover of Active Online from cost synergies , where we understand ELCO can reduce its 3rd party ‘image scanning’ bills by circa €150k pa, utilising AO’s in-house facilities. But, more importantly, also from integrating the business with its own rival interactive visualisation division ESIGN (10% sales, located 270km away in Hanover) – coupled with cross selling the solutions into each other’s extensive client lists (
All told, to us this looks an attractively priced, earnings accretive (in year 1) and materially value enhancing deal, for a profitable software expert at the forefront of BuildTech visualisation.
Lastly, this morning’s upbeat announcement reported that the ELCO business “continues to trade in line with its expectations, and its assessment of outlook & the market remains unchanged.â€
Going forward, our 2019 turnover, PBT & EPS estimates have been upgraded to £27.2m, £4.3m & 4.3p respectively vs £24.9m, £4.0m & 4.1p before. Likewise, we have nudged up the valuation from 110p to 115p/share. Or >55% higher than today’s 73p - representing steep discounts vs peers across all key metrics.
Elecosoft is a provider of integrated software applications and related services to international architectural, engineering and construction marketplaces and property management industries. Co. develops its specialist software through its own development teams in Sweden, Germany and the UK. Co. services its customers directly in its primary markets of Sweden, Germany, Benelux, the U.S and the U.K and indirectly to its non-core markets through a network of channel partners.
Proactis Holdings is engaged in the development and sale of business software, installation and related services.
Trimble is a provider of technology solutions. The company's solutions are used across a range of industries including agriculture, architecture, civil engineering, survey and land administration, construction, geospatial, government, natural resources, transportation, and utilities. The company has four reporting segments: Buildings and Infrastructure, which serves architects, engineers, contractors, owners, and operators; Geospatial, which serves customers working in surveying, engineering, and government; Resources and Utilities, which primarily serves customers working in agriculture, forestry, and utilities; and Transportation, which focuses on the transportation and logistics market.
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