Kin and Carta shares soar 40 per cent after £203m takeover deal
Shares in technology consultancy Kin and Carta rocketed more than 40 per cent on Wednesday morning after it said a £203m cash offer is set to take it private.
Private equity heavyweight Apax Partners has floated a £203m cash offer to buy the digital transformation company, formerly known as St Ives.
Kin and Carta has endorsed the takeover offer from Kelvin UK Bidco Limited, which is indirectly owned by Apax.
The board, with guidance from Citi, said the terms of the deal are “fair and reasonable”. They have unanimously pledged to recommend shareholders vote in favour of the takeover.
Shareholders are entitled to 110p per share in cash, 41 per cent over yesterday’s 78p closing price. The stock price is now around pre-pandemic levels after dipping to lows of under 60p in summer.
Kin and Carta has gradually transformed itself from a printing enterprise to a digital transformation specialist through various acquisitions.
Rohan Haldea, partner at Apax, said his firm believes there is “significant opportunity” for Kin and Carta to now chase further acquisitions, sharpening their competitive edge as a private company.
Chair of the company John Kerr said: “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.”
The offer, he added, “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.”