Korn Ferry Agrees To Acquire Hay Group In $452 Mln Deal

(RTTNews) - Korn Ferry (KFY), a pre-eminent global people and organizational advisory firm, said it has entered into a definitive agreement to acquire Hay Group for an aggregate purchase price of about $452 million.

The price consists of approximately $252 million in cash and $200 million in the company's common stock.

The transaction is expected to be accretive to earnings per share in the first full year, after adjusting for purchase accounting deferred revenue write-offs, intangible asset amortization, retention bonuses and restructuring and transaction costs.

According to the company, the combination brings together two world class brands with a rich heritage and more than a century of combined success in fueling people and leadership to drive positive change in organizations and society.

Founded in 1943, Hay Group is engaged in people strategy and organizational performance.

With a solid portfolio of intellectual property, Hay Group helps organizations reach their aspirations and strategic goals by releasing the full power and potential of their people.

With the addition of Hay Group, Korn Ferry will have an unrivaled ability to support the global business community in attracting top talent and designing compensation and reward incentives, with an integrated approach to the entire leadership and people continuum.

The deal is expected to close before the end of 2015. Korn Ferry will combine Hay Group with Korn Ferry's Leadership and Talent Consulting segment and brand the combined advisory business as Hay Group. Stephen Kaye, CEO of Hay Group, will continue to serve in this role with Korn Ferry.