TIDMKCT
RNS Number : 6558Y
Kin and Carta PLC
09 May 2023
For immediate release
9 May 2023
Kin and Carta plc
("Kin + Carta", the "Group" or the "Company")
Acquisition of Forecast Data
-- Strengthens and accelerates the Group's global data and artificial intelligence capabilities
-- Builds on successful integrations of Cascade Data Labs and Octain AI
Kin and Carta plc ("Kin + Carta" or the "Company"), the global
digital transformation ("DX") consultancy, announces the
acquisition of Forecast Data, a global data service provider,
further strengthening its high quality data and artificial
intelligence ("AI") services (the "Acquisition").
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.
Transaction highlights
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 spó ka 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.
Commenting on the Acquisition, 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."
* adjusted for certain non-recurring expenses
Enquiries:
Kin + Carta
Kelly Manthey CEO +44 (0) 207 928
Chris Kutsor CFO and COO 8844
Powerscourt
Elly Williamson / Jane Glover +44 (0)7713 246126
Numis Securities Limited
Nick Westlake / Tejas Padalkar +44 (0)207 260 1345
Peel Hunt LLP +44 (0) 20 7418
John Welch / Paul Gillam 8900
About Kin + Carta
Kin + Carta is a London Stock Exchange listed global digital
transformation consultancy committed to working alongside clients
to build a world that works better for everyone.
Kin + Carta's 2,000 consultants, engineers and data scientists
around the world bring the connective power of technology, data and
experience to the world's most influential companies - helping them
to accelerate their digital roadmap, rapidly innovate, modernise
their systems, enable their teams and optimise for continued
growth. Headquartered in London and Chicago with offices across
three continents, the borderless model of service allows for the
best minds to be connected to collaborate on client challenges.
With purpose at its core, Kin + Carta became the first company
listed on the London Stock Exchange to achieve B Corp
certification. It meets high standards of verified social and
environmental performance, public transparency and accountability
to balance the triple bottom line of people, planet and profit.
For more information, please visit
https://www.kinandcarta.com.
Important notices
Cautionary statement regarding forward-looking statements
This Announcement may contain "forward-looking statements" with
respect to certain of the Company's plans and its current goals and
expectations relating to its future financial condition,
performance, strategic initiatives, objectives and results.
Forward-looking statements sometimes use words such as "aim",
"anticipate", "target", "expect", "estimate", "intend", "plan",
"goal", "believe", "seek", "may", "could", "outlook" or other words
of similar meaning. By their nature, all forward-looking statements
involve risk and uncertainty because they are based on numerous
assumptions regarding the Company's present and future business
strategies, relate to future events and depend on circumstances
which are or may be beyond the control of the Company which could
cause actual results or trends to differ materially from those made
in or suggested by the forward-looking statements in this
Announcement, including, but not limited to, domestic and global
economic business conditions; market-related risks such as
fluctuations in interest rates; the policies and actions of
governmental and regulatory authorities; the effect of competition,
inflation and deflation; the effect of legislative, fiscal, tax and
regulatory developments in the jurisdictions in which the Company
and its respective affiliates operate; the effect of volatility in
the equity, capital and credit markets on profitability and ability
to access capital and credit; a decline in credit ratings of the
Company; the effect of operational and integration risks; an
unexpected decline in sales for the Company; inability to realise
anticipated synergies; any limitations of internal financial
reporting controls; and the loss of key personnel. Any
forward-looking statements made in this Announcement by or on
behalf of the Company speak only as of the date they are made. Save
as required by the Market Abuse Regulation, the Disclosure Guidance
and Transparency Rules, the Listing Rules or by law, the Company
undertakes no obligation to update these forward-looking statements
and will not publicly release any revisions it may make to these
forward-looking statements that may occur due to any change in its
expectations or to reflect events or circumstances after the date
of this Announcement.
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