Deal adds US$1.5 billion in booked fees and reach across 120 countries
OMERS Private Equity has agreed to sell UK-headquartered talent firm AMS to Korn Ferry for about US$1.1bn, a transaction the organizational consulting company said will lift the combined workforce above 16,000 people.
The price splits into roughly US$881m in cash and about US$255m in Korn Ferry common stock, according to the announcement.
Korn Ferry plans to fund the cash portion with about US$300m on hand and roughly US$581m drawn from its existing revolving credit facility, and it will issue about 3.6m shares subject to a 15 percent collar at closing.
AMS currently generates about US$650m in fee revenue and US$100m in adjusted EBITDA on an annual run-rate basis.
The company estimated that, absent an adverse shift in economic conditions, AMS would add about US$140m in run-rate adjusted EBITDA within a year of closing.
Korn Ferry described those figures as non-GAAP and non-IFRS measures and said a reconciliation was not available without unreasonable effort.
The buyer also pointed to contracted revenue as a draw, saying AMS's long-term agreements carry more than US$1.5bn in estimated fees still to be billed.
Michael Block, OMERS head of private capital, said AMS had expanded its capabilities and client relationships during the firm's ownership and that Korn Ferry represented a strong fit as the business entered its next phase.
Founded by Rosaleen Blair in 1996, AMS provides recruitment process outsourcing, early careers and campus recruiting, contingent workforce solutions, consulting and skills creation.
Its operations span more than 120 countries, and it serves clients across financial services, technology, healthcare, life sciences, consumer, industrial and public sector markets.
Korn Ferry's existing business covers search, talent and organizational solutions, and workforce solutions.
Blair will stay on as chair after the deal closes.
Gordon Stuart, AMS chief executive, said the combination would create opportunities for clients and teams, while Korn Ferry chief executive Gary Burnison said the two firms shared aligned cultures and values.
Korn Ferry expects the acquisition to close in the second fiscal quarter of its 2027 financial year, subject to regulatory clearances, and said the deal should be immediately accretive to earnings per share in the first full year after adjusting for restructuring, integration and transaction costs.
