Kin + Carta (LSE:KCT) shares are up after it received an increased takeover offer from private equity firm Apax.
The firm raised its offer to buy the digital transformation consultancy through a bidco to 120 pence for each scheme share, which will be paid in cash, according to a statement.
The sweetened offer, which Apax indicated will be its final bid to take the consultancy private, values the business at about £258 million, representing a 13.7 x multiple of its underlying earnings (EBITDA) for the year to 31 July 2023.
The offer is a 54% premium on the closing price of Kin + Carta’s shares on 17 October, the last day before the offer period started, which was 78 pence per share.
It is 10 pence, or 9%, higher per share compared to the original offer of 110 pence in cash per scheme share.
The consultancy's share price rose 8.32% to 112 pence per share this morning.