Korn Ferry to acquire AMS for £850 million to expand consulting
Korn Ferry announced a definitive agreement to acquire AMS from OMERS Private Equity for £850 million, aiming to create a global leader in talent and organizational consulting. The transaction, expected to close in the fiscal second quarter of FY’27, combines the firms' expertise across RPO, Early Careers, and Contingent Workforce Solutions, creating an entity with over 16,000 colleagues. The deal, funded by cash on hand and debt, is projected to be immediately accretive to earnings per share and adds $1.5 billion in estimated remaining contract fees.
*this image is generated using AI for illustrative purposes only.
Korn Ferry has entered into a definitive agreement with OMERS Private Equity to acquire AMS for approximately £850 million (approximately $1.1 billion) to create a global leader in talent and organizational consulting. The transaction combines Korn Ferry’s expertise in Search, Talent & Organizational Solutions, and Workforce Solutions with AMS’s strengths in Recruitment Process Outsourcing (RPO), Early Careers, and Contingent Workforce Solutions. The combined entity will have more than 16,000 colleagues and place a professional in a job approximately every 90 seconds.
The acquisition agreement stipulates an aggregate purchase price of approximately £850 million, consisting of approximately £659 million in cash and approximately £191 million in Korn Ferry common stock. Korn Ferry plans to fund the cash portion using approximately $300 million of cash on hand and the remaining approximately $581 million through borrowings under its existing revolver. Additionally, Korn Ferry will issue approximately 3.6 million shares, subject to a 15% collar at the closing.
On a current annual run-rate basis, AMS is generating approximately $650 million of Fee Revenue and $100 million of Adjusted EBITDA. Korn Ferry estimates that the run-rate Adjusted EBITDA contribution will reach approximately $140 million within a year following the closing, assuming no adverse change in the economic environment. AMS’s long-term contracts will add more than $1.5 billion in estimated fees remaining under existing contracts, enhancing revenue visibility.
The consummation of the transaction is subject to receipt of regulatory clearances and is expected to close in Korn Ferry’s fiscal second 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, integration, and transaction costs. A conference call to discuss the transaction is scheduled for Monday, June 29 at 8:30 a.m. EDT.
Financial Breakdown of Acquisition
| Component | Amount |
|---|---|
| Aggregate Purchase Price | |
| Cash Portion | |
| Stock Portion | |
| Shares Issued | ~3.6 million |
Operational Metrics
| Metric | Amount |
|---|---|
| Current Annual Fee Revenue | ~$650 million |
| Current Annual Adjusted EBITDA | ~$100 million |
| Estimated Run-rate Adjusted EBITDA (Post-close) | ~$140 million |
| Estimated Fees Remaining under Contracts | >$1.5 billion |
How will Korn Ferry manage the integration of AMS's RPO and contingent workforce solutions to achieve the projected $40 million increase in Adjusted EBITDA?
What specific restructuring and integration costs does Korn Ferry anticipate, and how might these impact short-term profitability?
How will the increased leverage from the $581 million borrowing affect Korn Ferry's credit rating and financial flexibility post-acquisition?
16
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
