(Alliance News) - Kin & Carta PLC has agreed to a more than GBP200 million takeover offer from funds advised by Apax Partners LLP, representing a 41% premium per share compared to Kin & Carta's closing share on Tuesday, the two companies said on Wednesday.
Kin & Carta, a London-based business consultancy, agreed to an offer of 110 pence per share in cash, which represented a 41% premium to its Tuesday closing share price of 78p and values the entire company at GBP203 million.
Shares in Kin & Carta were up 40% to 109.28p each in London on Wednesday morning.
Apax Partners is a private equity advisory firm based in London. It said it views Kin & Carta as a "high-quality business with a strong platform in the digital transformation sector, particularly in view of its impressive roster of blue-chip enterprise customers, recognised brand and capabilities in key areas of the sector."
However, Apax added it believes the changing economic backdrop has highlighted "the importance of scale and diversification in the DX sector", and that as a private company, Kin & Carta will be "better placed to make the investments necessary to position the business for long-term success".
Kin & Carta directors said they considered the offer fair and reasonable and unanimously recommended that shareholders vote in favour of the scheme at a court meeting and general meeting, which requires a 75% supermajority at both meetings.
A date for both meeting was not disclosed but the acquisition is currently expected to complete during the first quarter of 2024.
"We believe the offer to acquire Kin & 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," said Kin & Carta Chair John Kerr.
"Apax's experience supporting and growing digital consultancy businesses with valuable connections, resources and access to incremental growth capital will enable Kin & Carta to expedite progress on the company's existing strategy, by bolstering [mergers and acquisitions] capacity, providing access to new markets, and supporting the management team to deliver profitable long-term growth."
By Greg Rosenvinge, Alliance News reporter
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