LONDON, UK: Kin and Carta plc, the global digital transformation (DX) consultancy, announced the acquisition of Forecast Data, a global data service provider, further strengthening its high quality data and artificial intelligence (AI) services.

Edinburgh-based Forecast Data uses advanced AI and machine learning to drive business performance. The acquisition builds on the successful previous acquisitions of Cascade Data Labs (2020) and Octain AI (2021), as Kin + Carta continues to accelerate global data and AI capabilities in line with rising demand.

Forecast Data’s established relationships with leading universities will also bring increased access to emerging data science and analytics talent.

The acquisition enriches Kin + Carta’s existing data certifications with global technology partners Google and Microsoft, providing further depth and scale to the consultancy’s data programmes with enterprise businesses across Europe and America. Forecast Data’s enterprise client base includes leading financial services brands and one of the world’s largest media companies.

The initial consideration is GBP 3 million with customary adjustments for cash, debt and working capital, paid in cash at completion, corresponding to 4.5 times projected adjusted EBITDA for the 12 months ended 30 September 2023.

In addition, an earn-out is potentially payable dependent upon growth in adjusted EBITDA from closing up to 30 September 2024 and will vest over 29 months. Up to 75% percent of the earn out may be payable in Kin + Carta ordinary shares at the Company’s discretion.

Kin + Carta intends to finance the initial consideration for the acquisition from drawings under its existing committed revolving credit facilities. The total consideration is capped at GBP 13.1 million.

Kin + Carta expects the acquisition to be accretive to adjusted earnings per share in the first full year of ownership, with financial leverage expected to increase modestly.

Forecast Data generated revenues of GBP 3.5 million and adjusted* EBITDA of GBP 0.5 million for the year ended 30 June 2022. The most recent quarterly performance has further improved with revenue growth and margin expansion. Forecast Data’s gross assets were approximately GBP 0.8 million as at 30 June 2022. All figures are unaudited.

The acquisition comprises the purchase of MacDonald Family Limited, the European holding company of Forecast Data Services Limited and Forecast Poland spółka z o.o. (“Forecast Data”) from Neil and Jennifer MacDonald and a small group of senior managers, who will continue to serve post-completion. Director and Founder of Forecast Data, Neil MacDonald, will continue to drive growth in data and AI services, reporting directly to David Tuck, Group CEO of Europe at Kin + Carta.

Kelly Manthey, Global CEO at Kin + Carta said: “Enterprise data transformation is a key part of our growth strategy. This acquisition strengthens our data and artificial intelligence capabilities globally helping to satisfy our order backlog and establishing a data hub for Europe that matches our strong capabilities in America. We are ready to serve our clients’ business critical priorities with the next wave of innovation.”

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