Korn Ferry Acquires AMS for Approximately $1.1B

Korn Ferry announced that it has entered into a definitive agreement with OMERS Private Equity to acquire UK-headquartered AMS, which will create a global leader in talent and organizational consulting. Under the terms of the acquisition agreement, Korn Ferry has agreed to acquire AMS for an aggregate purchase price of approximately $1.1B, consisting of (i) approximately $881M in cash and (ii) approximately $255M in Korn Ferry common stock. Korn Ferry expects to fund the cash portion of the transaction consideration with approximately $300M of cash on hand and the remaining approximately $581M of cash consideration with borrowings under Korn Ferry's existing revolver. Additionally, Korn Ferry will issue approximately 3.6M shares, subject to a 15% collar at the closing. On a current annual run-rate basis, AMS is generating approximately $650M of Fee Revenue and $100M of Adjusted EBITDA. Assuming no adverse change in the economic environment, Korn Ferry estimates that the run-rate Adjusted EBITDA3 contribution within a year following the closing of the acquisition will be approximately $140M. The consummation of the transaction is subject to receipt of regulatory clearances and is expected to close in Korn Ferry's 2nd fiscal quarter of FY'27. The transaction is expected to be immediately accretive to earnings per share in the first full year after adjusting for restructuring and integration and transaction costs. AMS's long-term contracts will add more than $1.5B in estimated fees remaining under existing contracts, providing greater revenue visibility and enhancing the company's ability to provide scalable, data-driven talent strategies across geographies and industries.