LONDON: Kin and Carta plc, the international digital transformation company, announced the acquisition of Cascade Data Labs LLC, a Portland, Oregon-based data transformation consultancy.
This comes following the announcement on 17 December of the disposal of Kin and Carta non-core agency Hive for £13.8 million.
Cascade offers end-to-end data transformation expertise across all of the interrelated disciplines required to drive business value, including data integration, data governance, data engineering, data science and data visualisation.
Cascade has extensive experience delivering value across numerous industry segments and helping some of the world’s most premier brands execute their highest-profile data transformation initiatives.
The Acquisition supports the expansion of Kin and Carta’s data capabilities, which are a fast growing part of the Kin and Carta digital transformation proposition.
Earlier this month Kin and Carta appointed Silicon Valley data veteran Cameron Turner as Vice President of Data Science. Cascade’s founders, Josh Levin and Greg Holiat, will take on leadership roles alongside Cameron in Kin and Carta’s data transformation practice. This Acquisition also supports Kin and Carta’s further regional expansion into the US Pacific Northwest.
The initial consideration for the Acquisition is US$6.9 million payable in cash at completion with a further US$2.2 million payable in June 2021 contingent upon performance, of which up to 75% may be paid in Kin and Carta shares at the Company’s discretion.
There is a further deferred element to the consideration contingent upon adjusted EBITDA performance over the two years ending 30 September 2022, to be settled over a four year period in cash or up to 75% in Kin and Carta shares also at the Company’s discretion.
The total consideration is capped at $29.7 million, corresponding to a significantly earnings-accretive performance. Cascade is a fast growing, profitable firm with net revenue of US$5.7 million and profit before tax of US$2.1 million in the 12 months to 30 September 2020, and gross assets of US$6.6 million at 30 September 2020.
The Acquisition is expected to be immediately earnings accretive. Completion of the Acquisition is subject to settlement of the consideration due, which is expected to take place by 24 December.
In the results announcement of 5 November, for the year ended 31 July 2020, the Company stated that pipeline activity had improved and that clients were either restarting projects they had delayed or were commissioning new ones. The Company also announced a number of new client wins. Since that announcement, the Company has continued to win revenue from new and existing clients in both the US and Europe as expected.
J Schwan, CEO, said: “The acquisition of Cascade Data Labs will supercharge our existing data transformation capabilities, while expanding our US presence further westward. An enhanced data offering will appeal to both existing and new clients. I look forward to providing further details about our progress in this high growth area of the digital transformation industry.”
Kin + Carta is a global digital transformation business. Leveraging over 1,600 highly specialised technologists, strategists and creatives across four continents.
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