Apax Partners is bidding 110p/share for Kin & Carta (LON: KCT), which is a 41% increase on the pre-bid share price. The share price has not been this high since March, but the bid is less than 50% of the 2023 high ahead of the February profit warning.
Digital transformation consultancy Kin & Carta has been held back by lack of scale and Apax believes it can help to grow the business because it has experience in the sector. This could accelerate organic and acquisitive growth.
Kin & Carta says 2022-23 revenues were flat at £192m, while operating profit was between £17.9m and £18.4m, which is more than 10% better than market forecasts. In the August trading statement, the company said that there are still market headwinds for the business.
Kin & Carta was the first Main Market listed company to be certified B Corp. It is based in London and Chicago.
The bid values Kin & Carta at £203m. Net debt was £20m at the end of July 2023.
