Apax Partners acquires digital services firm Kin+Carta

The AWS and Microsoft partner will now be owned privately

Investment firm Apax Partners has agreed to acquire £203m-worth digital service provider Kin+Carta.

Under the terms of the acquisition, each Kin+Carta shareholder will receive 110 pence in cash for each share held.

The offer price represents a premium of approximately 41 per cent to the closing price of 78 pence per Kin+Carta share on 17 October 2023.

The acquisition values Kin+Carta's entire issued, and to be issued, ordinary share capital at approximately £203m.

Apax explained it had decided to acquire Kin+Carta thanks to its "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".

Apax also explained that in the changing economic backdrop, it is important to scale and diversify in the DX sector.

Apax believes that as a private company Kin+Carta will be better placed to make the investments necessary to position the business for long-term success.

"We believe we are well-positioned to support Kin+Carta's next phase of growth given its significant experience and track record within this sector," the announcement read.

"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."

Earlier this year, AWS and Microsoft partner Kin+Carta was in the news for its acquisition of data service provider Forecast Data Services with the aim of strengthening its global enterprise data and AI services.