Korn Ferry Enters into Definitive Agreement to Acquire Three Leadership Development Companies
Combination Bolsters Learning & Development and Training Offerings
Korn Ferry (NYSE: KFY) announced that it has entered into a definitive agreement to acquire three companies from TwentyEighty, Inc. in the leadership development area: Miller Heiman Group, AchieveForum, and Strategy Execution. The transaction, which is subject to customary closing conditions, is expected to close by November 1.
“The combination brings a world-class portfolio of learning, development, and performance improvement offerings and expertise to Korn Ferry and will bolster our firm’s substantial leadership development capabilities,” said Gary D. Burnison, CEO, Korn Ferry.
Byron Matthews of Miller Heiman Group, Christoffer Ellehuus of Strategy Execution, and Scott Bohannon of AchieveForum said: “We are delighted to find the perfect strategic home at Korn Ferry. We are enthusiastic about what the future will bring from this acquisition in terms of synergistic product and consulting solution offerings for our customers as well as career opportunities for our employees.”
Miller Heiman Group specializes in transforming sales performance and customer experience. AchieveForum offers frontline leadership development. Strategy Execution provides organizational and project management training. Combined, the three companies have trained thousands of professionals and hundreds of clients across the globe and have substantial expertise in sales performance and customer experience, frontline leadership development, and project management, which will greatly benefit future clients.
These companies will be part of a newly branded Korn Ferry Digital (formerly the Products Group), which, working closely with Consulting, will provide clients direct access to data, insights and analytics from one of the world’s most comprehensive people and organizational databases. The addition of these three companies is expected to further expand Korn Ferry’s vast intellectual property and content and leverage the firm’s digital delivery platforms.
The broader corporate training and education market is a greater than $300 billion global market opportunity, which includes retraining employees to meet the changing demands of today’s dynamic business landscape. The acquisition of the three businesses is expected to accelerate Korn Ferry’s ability to capture a share of this significant market.
Terms of the deal were not disclosed. The acquisition is expected to be accretive to adjusted earnings in the first year of Korn Ferry’s ownership.
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “will,” “may,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include, but are not limited to, statements relating to the timing of the transaction, the expected benefits of the transaction, including future financial and operating results, expected synergies, and the Company’s plans, objectives, expectations, and intentions. Such statements are based on Korn Ferry’s current expectations and are subject to numerous risks and uncertainties, many of which are outside of the control of Korn Ferry. Readers are cautioned not to place undue reliance on such statements.
A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to: the occurrence of any event, change, or other circumstances that could give rise to the termination of the acquisition agreement; the inability to timely complete or complete at all the transaction because of the failure to satisfy conditions to closing set forth in the acquisition agreement, including due to any delays in obtaining or the inability to obtain necessary regulatory approvals or complete regulatory reviews required to complete the transaction; the risk that the transaction disrupts current plans and operations of Korn Ferry and/or the businesses to be acquired as a result of the announcement, pendency or consummation of the transaction; the ability to successfully integrate the operations and employees of the business to be acquired into Korn Ferry; the ability to recognize the anticipated benefits of the transaction, which may be affected by, among other things, competition, the ability of Korn Ferry to grow and manage growth profitably, maintain relationships with customers and suppliers, and retain key employees; costs related to the transaction; the outcome of any legal proceedings that may be instituted against Korn Ferry or the acquired entities or their respective affiliates following announcement of the transaction; changes in applicable laws or regulations; the possibility that Korn Ferry or the businesses to be acquired or their respective subsidiaries and affiliates may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in filings with the SEC by Korn Ferry.
Korn Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.