Kin + Carta Board Recommends Sale

UK-based digital transformation consultancy Kin + Carta is set to be acquired by private equity advisory firm Apax Partners, in a deal valuing it at around £203 million, or 110p per ordinary share.

Kelvin UK Bidco Limited ('Bidco'), a newly formed company owned indirectly by funds advised by Apax, will offer cash for the entire ordinary share capital ('issued, and to be issued') of Kin and Carta. The price represents a 41% premium to both the 17th October closing price of the firm's shares, and the volume-weighted average price for the preceding three-month period.

Five years ago this month UK marketing services group St. Ives changed its name to Kin and Carta plc following the disposal of its legacy printing and publishing businesses, opting to focus on digital services.

Chairman John Kerr (pictured) says of the proposed deal: 'Following the successful strategic repositioning of the company to a pure-play global digital transformation consultancy, Kin and Carta is poised to execute the next phase of development for the business. We believe the offer to acquire Kin and Carta by Apax Funds represents an excellent opportunity for the Company to accelerate ambitious growth plans and scale the business, building on the acquisition and integration of leading data and technology companies, the development of valuable technology partnerships, and the creation of a strong portfolio of enterprise clients'.

Apax says it believes Kin and Carta is a high-quality business with a strong platform in the Digital Transformation sector, based on an 'impressive roster of blue-chip enterprise customers' as well as its recognised brand and capabilities in key areas of the sector. However it also feels that 'as a private company Kin and Carta will be better placed to make the investments necessary to position the business for long-term success'.

Apax funds will help Kin + Carta accelerate growth both organically and inorganically. Kin + Carta's directors declared the offer to be 'fair and reasonable' and have recommended acceptance: the deal is subject to a shareholder vote and is currently expected to complete during Q1 2024.

Kin and Carta's headquarters are in London, with US headquarters in Chicago, and it has over 1,800 consultants, engineers and data scientists globally. Web site: www.kinandcarta.com .