Digital transformation group, Kin and Carta, is set to be acquired by a private equity group for £203m.
The listed company, previously known as St Ives, has bases around the world, including offices in Manchester and Liverpool.
It has announced that Kelvin UK Bidco, a company indirectly owned by funds advised by Apex Partners had agreed to acquire the operation in its entirety.
The offer price of 110p is above the previous closing price of 78p and values the group at around £203m – its share price has since increased to 109p.
“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,” explained John Kerr, the Chair of Kin and Carta.
“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.
“[…] The Kin and Carta Board has concluded that the offer from Apax Funds provides shareholders with the certainty of a cash price today that fairly represents the opportunities and risks inherent in the business and delivery of Kin and Carta’s strategy. The Board unanimously intends to recommend that Kin and Carta shareholders vote in favour of the Acquisition.”
Apax said of the move, that it viewed Kin and Carta as a “high-quality business with a strong platform in the Digital Transformation (“DX”) sector, particularly in view of its impressive roster of blue-chip enterprise customers, recognised brand and capabilities in key areas of the sector. The Company is led by an experienced management team, with a clear vision and strategy for the future direction of the business.”
However, it believed than a changing economic backdrop had highlighted “the importance of scale and diversification in the DX sector.”
Apax stated that taking the group private would mean it were “better placed to make the investments necessary to position the business for long-term success.”
The private equity company added that it felt it was well positioned to do this and would provide “operational expertise, and the Apax Funds intend to provide capital, to support the business in order to accelerate growth both organically and inorganically to continue building scale in key areas.”
“We believe there is significant opportunity to enhance Kin and Carta’s prospects as a private company, including by pursuing acquisitions that would enhance further its competitive position,” added Rohan Haldea, a partner at Apax.
“As significant investors in the space, we hope to draw on our network, experience and operational expertise to support management and the wider team by investing in the business to enhance the value for customers, employees and other stakeholders, building on the firm’s success to date.”
Kin and Carta’s employs more than 1,800 consultants, engineers and data scientists around the world.
