Kin + Carta, a global digital transformation consultancy, has acquired Edinburgh-based Forecast Data for an initial consideration of 拢3 million which could rise to 拢13.1m.
Forecast Data uses advanced AI and machine learning to drive business performance. Listed Kin + Carta says the deal builds on the previous acquisitions of Cascade Data Labs in 2020 and Octain AI in 2021 as it looks to accelerate its global data and AI capabilities in line with rising demand.聽
Forecast Data’s established relationships with leading universities will also bring increased access to emerging data science and analytics talent. The firm generated revenues of 拢3.5m and adjusted EBITDA of 拢500,000 for the year ended 30th June 2022.
The 拢3m deal, to be paid in cash on completion, corresponds to 4.5 times projected adjusted EBITDA for the 12 months ended 30th September 2023. An earn-out is also potentially payable dependent upon growth in adjusted EBITDA up to 30th September 2024 and will vest over 29 months. The total consideration is capped at 拢13.1m.
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.
“Enterprise data transformation is a key part of our growth strategy,鈥� said Kelly Manthey, global CEO at Kin + Carta.聽
鈥淭his 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.聽
鈥淲e are ready to serve our clients’ business critical priorities with the next wave of innovation.”