Kin & Carta Conducts Placing To Fund USD15 Million Spire Digital Buy

(Alliance News) - Kin & Carta PLC on Friday said it will acquire Spire Digital Inc for USD14.8 ...

Alliance News 22 November, 2019 | 10:35AM
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(Alliance News) - Kin & Carta PLC on Friday said it will acquire Spire Digital Inc for USD14.8 million in cash, partly funded through a share placing.

Shares in Kin & Carta were up 3.4% at 92.01 pence in London in morning trading.

Digital technology firm Kin & Carta, which evolved from print shop St Ives, raised gross of GBP13.6 million via a 15.3 million share placing at 89p per share, with the shares representing around 9.9% of Kin & Carta's issues share capital at the close on Thursday. The placing was underwritten by Numis Securities Ltd, which is also acting as sole bookrunner.

A number of Kin & Carta directors participated in placing, including Chief Executive John Schwan, Chief Financial Officer Chris Kutsor, Non-Executive Chair Designate John Kerr, Senior Independent Director Helen Stevenson, and independent non-executive directors Michele Maher and Nigel Pocklington.

Placing shares are set to be admitted to the London Stock Exchange on Tuesday next week, which will take the total number of shares in issue to 168.8 million. The acquisition is conditional upon the placing.

The placing proceeds will go towards the acquisition of US-based digital consulting firm Spire Digital, with the remaining money coming from Kin & Carta's existing revolving credit facility and existing cash resources.

Spire Digital is headquartered in Colorado and its president and chief operating officer will remain as senior management, while founder Mike Gellman will remain as an advisor to Spire Digital. Spire Digital will be integrated in the Kin & Carta Innovation platform.

In 2018, Spire Digital generated USD9.4 million in revenue and an adjusted operating profit of USD1.3 million. As at December 31 its gross assets totalled GBP1.8 million. The acquisition is expected to enhance Kin & Carta's earnings in the first full year of ownership, it said. Leverage is forecast to stay broadly unchanged, maintaining the target of 1.0 times to 2.0 times in the medium term.

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Kin and Carta PLC 103.50 GBX 4.33 -

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