Kin and Carta Shares Surged 41.2% on £203M Apax Takeover Offer

The Kin and Carta PLC (LON: KCT) share price surged 41.21% after announcing that it had accepted a takeover deal from Kelvin UK Bidco Limited (BidCo) valuing each of its shares at 110p, for a total valuation of £203 million on a fully diluted basis.

Kelvin UK Bidco is a private UK company recently formed by funds advised by Apax Partners LLP to acquire Kin and Carta. The Bidco intends to acquire Kin and Carta via a court-sanctioned scheme but reserves the right to submit an offer for the digital transformation company. 

Apax, a respected investment and private equity player, has expressed its optimistic view regarding Kin and Carta, characterising it as a high-quality business with a robust presence in the Digital Transformation (DX) sector. 

This confidence is rooted in Kin and Carta's remarkable portfolio of blue-chip enterprise clients, a recognised brand, and a strong foothold in critical segments of the DX industry. Additionally, Apax acknowledges that Kin and Carta is guided by a proficient management team equipped with a clear vision and a well-thought-out strategy for the future.

However, the global economic landscape is ever-evolving, emphasising the significance of size and diversification within the DX sector. Apax believes that by transitioning into a private company, Kin and Carta can better position itself to make the necessary investments to secure its long-term success.

Apax is confident in its ability to bolster Kin and Carta's next growth phase, drawing upon its substantial experience and successful track record in the DX sector. 

The intent is to offer not just capital but also operational expertise to support the business, facilitating accelerated growth through organic expansion and strategic acquisitions to solidify its presence in key sectors.

Apax envisions a strategic partnership with Kin and Carta and the Apax Funds away from the public markets, anticipating that this shift will enhance the potential for value creation compared to the current status quo of being a listed company. 

In conclusion, Apax sees great promise in Kin and Carta's position in the Digital Transformation sector, backed by its distinguished clientele, brand recognition, and expertise. 

Kin and Carta (KCT) share price. 

The Kin and Carta (KCT) share price surged 41.21% to trade at 110.50p, from Tuesday’s closing price of 78.25p.