LONDON, UK: Kelvin UK Bidco Limited, a newly formed company owned indirectly by funds advised by Apax Partners LLP, has offered to takeover Kin and Carta plc. Under the terms of the acquisition, each Kin and Carta shareholder will be entitled to receive 110 pence in cash translating the acquisition value of Kin and Carta’s entire issued, and to be issued, ordinary share capital at approximately £203 million on a fully diluted basis.
The offer price represents a premium of approximately 41 per cent to the Closing Price of 78 pence per Kin and Carta Share on 17 October 2023 (being the last Business Day before the commencement of the Offer Period).
Apax views Kin and Carta as a high-quality business with a strong platform in the Digital Transformation (“DX”) sector, particularly in view of its impressive roster of blue-chip enterprise customers, recognised brand and capabilities in key areas of the sector.
The Company is led by an experienced management team, with a clear vision and strategy for the future direction of the business.
However, the changing economic backdrop has highlighted the importance of scale and diversification in the DX sector. Apax believes that as a private company Kin and Carta will be better placed to make the investments necessary to position the business for long-term success.
Apax believes it is well positioned to support Kin and Carta’s next phase of growth given its significant experience and track record within this sector. Apax intends to provide operational expertise, and the Apax Funds intend to provide capital, to support the business in order to accelerate growth both organically and inorganically to continue building scale in key areas.
A partnership with Apax and the Apax Funds away from the public markets is expected to improve the potential for value creation compared to the status quo as a listed business and better position the Company to create long-term value for the benefit of customers, employees and other stakeholders.
Rohan Haldea, a partner at Apax, said: “We are impressed by Kin and Carta’s unique culture, talented team, and focus on customer impact as evidenced by their B Corp status.
We have followed the company closely for several years and we have witnessed firsthand how their focus on innovation and strong platform in the Digital Transformation sector has made Kin and Carta a partner of choice for clients grappling with complex technology problems.
We believe there is significant opportunity to enhance Kin and Carta’s prospects as a private company, including by pursuing acquisitions that would enhance further its competitive position.
As significant investors in the space, we hope to draw on our network, experience and operational expertise to support management and the wider team by investing in the business to enhance the value for customers, employees and other stakeholders, building on the firm’s success to date.
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