REG - Kin and Carta PLC - Acquisition of Forecast Data

Kin and CartaAnnouncement

09/05/2023 07:15

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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
spółka 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                       +44 (0) 207 928 8844

 Kelly Manthey CEO

 Chris Kutsor CFO and COO
 Powerscourt                       +44 (0)7713 246126

 Elly Williamson  / Jane Glover
 Numis Securities Limited          +44 (0)207 260 1345

 Nick Westlake / Tejas Padalkar

                                        +44 (0) 20 7418 8900

 Peel Hunt LLP

 John Welch / Paul Gillam

 

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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