Kin and Carta, which advises companies on technology strategies, is the latest company to be targeted by private equity predators
Private equity has once again nabbed a London-listed company, dealing another blow to the stock market.
Apax Partners has agreed to acquire technology consultancy Kin and Carta for £203m.
Kin and Carta, which advises companies on their technology strategies, is the latest company to be targeted by private equity predators.
After a wave of so-called ‘pandemic looting’ during the pandemic, bidders are still circling, with moves in recent weeks including Dbay Advisors’ £143m purchase of Finsbury Food and a ‘semi-hostile’ bid for waste management company Renewi, worth £636 million, from Australian giant Macquarie.
Acquisition: Private equity firm Apax Partners has agreed to acquire technology consultancy Kin and Carta for £203 million
The board of Kin and Carta has recommended that shareholders approve Apax’s offer.
The offer values the 60-year-old company at 110 pence per share, which is a 41 percent premium to Tuesday’s closing price of 78 pence.
Shares rose 39.7 per cent, or 31p, to 109p yesterday.
“Technology companies are already scarce on the London Stock Exchange, so the prospect of global digital transformation company Kin and Carta being bought will be another blow,” said Susannah Streeter, head of markets at Hargreaves Lansdown.
“Shares had fallen more than 75 percent since hitting highs in November 2021 amid pandemic enthusiasm for digitally focused companies.
With the shares at an all-time low and the pound also losing value against the dollar, the company is clearly attractive to Apax.
‘It takes the opportunity to strike while the price is good and the pound is weak.’
The deal is expected to be completed in the first three months of next year.
Apax said the deal will “enhance its value creation potential compared to the status quo as a listed company” and enable it to make better investments.
Kin and Carta, formerly known as St Ives, was founded in 1964 and started as a printing group before diversifying into marketing services.
The company was listed in London in 1985.
In 2018 it dropped the St Ives name and its printing operations after deciding to focus on becoming a digital transformation consultancy.
Kin and Carta employs 1,800 people and is headquartered in London with a US base in Chicago.
Chairman John Kerr said: ‘We believe Apax’s offer provides an excellent opportunity for the company to accelerate ambitious growth plans.’