Kinovo turned over £64m last year and specialises in electrical safety and maintenance work. It will be taken private under the all-cash offer backed by its board.

Shareholders will receive 87.5p per share – a 41% premium on the pre-bid price.

Kinovo operates mainly in the south east and East Anglia employing around 250 staff through three brands: Dunhams, Purdy and Spokemead.

Sureserve, five times the size of Kinovo with revenues topping £330m, said the acquisition would strengthen its offering across heating, compliance and energy efficiency as it targets long-term growth in decarbonising social housing.

The takeover has already won support from investors controlling 47% of Kinovo shares and is expected to complete in early July.

Sureserve executive chair Graham Levinsohn said: “We believe the acquisition of Kinovo, with its focus on compliance and energy transition in social housing, fits perfectly with our strategy, and that bringing the two businesses together will enhance our offering to our clients.”

Kinovo chair Sangita Shah added: “As a board we unanimously recommend this deal to our shareholders, believing that this acquisition presents an opportunity to realise immediate value and at a meaningful premium.”