Kin and Carta PLC (LSE:KCT) shares jumped 41% as directors agreed for the digital transformation consultant to be taken private by private equity giant Apax Partners for £203 million cash.
Shareholders in the firm formerly known as St Ives will be offered a price of 110p.
The shares immediately leapt to the offer price, which is only 1p more than the price before the first pandemic lockdown and half the level the shares were at this February, before a profit warning. They hit a low of below 60p in the summer but have perked up since August as trading has improved.
Kin and Carta's board, advised by Citi, said they consider the terms of the deal "fair and reasonable" and said they intend to recommend unanimously that shareholders vote in favour. Directors hold roughly 0.7% of the shares.
Chair John Kerr said the board believes the offer "provides shareholders with the certainty of a cash price today that fairly represents the opportunities and risks inherent in the business and delivery of Kin and Carta's strategy".