By Connor Hart
Korn Ferry agreed to purchase AMS for an aggregate price of about $1.1 billion, expanding its portfolio of professional services with additional workforce and operational capabilities.
The consulting firm on Monday said the combination will bring together two highly complementary organizations, and that the collective firm will have more than 16,000 employees.
"By bringing AMS into the Korn Ferry family, we are expanding our ability to help clients solve their most critical organizational challenges," Chief Executive Gary Burnison said, adding that recent technological advancements are carried out by teams of people.
The purchase will add AMS's services across recruitment, workforce solutions, consulting and skills creation to Korn Ferry's existing portfolio.
Headquartered in the U.K., AMS services span various industries and more than 120 countries, including an established presence throughout Europe and Asia.
The cash-and-stock deal consists of roughly $881 million in cash, a combination of both cash on hand and debt, as well as approximately $255 million in Korn Ferry common stock.
AMS generates about $650 million in fee revenue annually, Korn Ferry said, as well as about $100 million in adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization. The company added AMS's long-term contracts will add more than $1.5 billion in estimated fees remaining under existing contracts.
The deal is expected to close in the second quarter of Korn Ferry's fiscal 2027 and be immediately additive to earnings per share, it said.
Write to Connor Hart at connor.hart@wsj.com