Eleco spreads its wings with acquisition of Asta

Continuing its expansion into the construction software market, Eleco has acquired Asta Development, a provider of project and resource management software in a £7.65m deal.

The move represents a significant strategic move for Eleco's construction software activities, which had not been performing as well as its shareholders had hoped. John Ketteley, executive chairman of Eleco, believes that Asta fits well within the business. "At a stroke it strengthens our software management and development capability," he said. "It dramatically increases our construction software product portfolio and provides significant marketing, cross-selling and product combination opportunities."

Asta Developments supplies its software to the majority of main contractors by turnover in the UK and is providing products to the Olympic Development Authority for the realisation of the Olympic 2012 project. Through its Consultec software subsidiary, Eleco occupies a strong position in Sweden's estimating and project management software market.

Both Asta and Eleco are active in the German and Dutch construction markets and the board of Eleco believes the acquisition will improve its geographic representation and further its presence in the UK.

[Contract Journal, 24 January 2007, p13]