$KSI.TO

Update: kneat.com to go Private in About C$650 Million Deal; Shares Up 18%

(Updates shares in the first and last paragraphs)kneat.com (KSI.TO) shares rose 18% on Monday after it entered into a definitive arrangement agreement with an affiliate of Thoma Bravo, L.P., whereby the purchaser will buy all of the issued and outstanding common shares of the company, subject to customary approvals, for about C$650 million.Under the deal, shareholders of the company, other than any rollover shares, will receive C$6.50 cash per share, representing total equity value of about C$650 million, the company said. Kneat will become a privately held company upon completion of the deal.The purchase price is a premium of about 20% to the closing price on June 5, the last trading day prior to the announcement. The break fee payable by the company is about C$22.6 million.Thoma Bravo intends to speed-up Kneat's "pursuit of its mission to enable any regulated company to be confident it is developing, manufacturing, and delivering its products to the highest safety standard," the company said. Shares of the company are expected to be delisted from the TSX and the company will cease to be a reporting issuer in all applicable Canadian jurisdictions following deal completion.Thoma Bravo and certain existing director and management shareholders of Kneat may elect to roll a portion of their equity into shares of the purchaser or an affiliate of the purchaser. Terms of any such rollover have not been negotiated, it added.Shares of the company were last seen up $1.01 to $6.43 on the Toronto Stock Exchange.Price: $6.43, Change: $+1.01, Percent Change: +18.54%

kneat.com to go Private in About C$650 Million Deal

kneat.com (KSI.TO) entered into a definitive arrangement agreement with an affiliate of Thoma Bravo, L.P., whereby the purchaser will buy all of the issued and outstanding common shares of the company, subject to customary approvals, for about C$650 million, it said on Monday.Under the deal, holders of the outstanding shares of the company, other than any rollover shares, will receive C$6.50 cash per share, representing total equity value of about C$650 million on a fully diluted, in-the-money, treasury-stock-method basis and inclusive of rollover shares, the company said. Kneat will become a privately held company upon completion of the deal.The purchase price represents a premium of about 20% to the closing price on June 5, 2026, the last trading day prior to the announcement of the deal on the Toronto Stock Exchange (TSX). The break fee payable by the company is about C$22.6 million.Thoma Bravo intends to speed-up Kneat's "pursuit of its mission to enable any regulated company to be confident it is developing, manufacturing, and delivering its products to the highest safety standard," the company said. Shares of the company are expected to be delisted from the TSX and the company will cease to be a reporting issuer in all applicable Canadian jurisdictions following deal completion.Thoma Bravo and certain existing director and management shareholders of Kneat may elect to roll a portion of their equity into shares of the purchaser or an affiliate of the purchaser. Terms of any such rollover have not been negotiated, it added.Shares of the company closed down 0.6% to $5.42 on Friday on the TSX.

Earnings Flash (KSI.TO) Kneat Reports Q1 Total Revenue C$18.0M, vs. FactSet Est of C$17.7M

CIBC Confirms Outperformer Rating on kneat.com and Raises Target to $6.25 on Strategic Review Confirmation

CIBC Capital Markets maintained its outperformer rating on the shares of kneat.com (KSI.TO) and raised its price target to C$6.25 from C$5.50 after the company confirmed that it started a strategic in February 2026 to explore potential strategic options.The bank sees kneat as "attractive" for both strategic and financial buyers, given its "leading position in digital validation software for regulated industries (used by eight of the world's top 10 pharmaceutical manufacturers) and strong recurring revenue growth (~$74MM ARR, +33% Y/Y SaaS revenue in 2025)"."With strategic optionality now adding upside potential, we maintain our Outperformer rating on Kneat, and we have adjusted our valuation approach to blend our standalone intrinsic value with a scenario-weighted takeout value, resulting in a price target of $6.25 ($5.50 prior)," said analyst Erin Kyle. "We agree that ArisGlobal and Blue Mountain, which both serve major pharma customers would be logical bidders in terms of product fit and customer base."The bank also expects management to have a preference for an acquirer with experience scaling software and familiarity with the life sciences space, in a scenario where kneat decides to sell itself."Given Kneat's high gross margin and mission-critical software, we could see a scenario where a higher-than-average premium (40%-50%) is offered, resulting in 8.3x sales or $6.75/sh," said Kyle.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $5.30, Change: $+0.03, Percent Change: +0.57%

Kneat Confirms Strategic Review, Engages CIBC Capital Markets Adviser

Kneat.com (KSI.TO) confirmed Monday its board formed a special committee to review strategic alternatives and engaged CIBC Capital Markets as financial advisor, following a recent media report about a potential review process.The company said the strategic review, a process that can end with the sale of the company, began in February, though no definitive agreement has been reached and there is no assurance the process will result in a transaction.Kneat, which provides software for digitizing and automating validation and quality processes, said it remains focused on its business strategy and enhancing shareholder value.The company added it does not intend to provide further updates unless a definitive transaction is announced or disclosure is otherwise required by law.Shares of the company were last seen up $0.30 to $4.95 on Toronto Stock Exchange.Price: $4.91, Change: $+0.26, Percent Change: +5.59%