Korn+Ferry (NYSE: KFY) today announced that it has previously entered into a definitive agreement to acquire Lucas Group. The transaction, which is subject to customary closing conditions, is expected to close on November 1.
Korn Ferry’s world-class brand, vast intellectual property and five decades of recruiting expertise are a firm foundation for growing scale in today’s highly segmented professional search market. Lucas Group brings to Korn Ferry substantial professional search and contracting expertise which is expected to enhance the firm’s industry-leading search portfolio.
“This combination is the right move at the right time,” said Gary D. Burnison, CEO, Korn Ferry. “Today’s workscape is being transformed before our eyes – people working anywhere, everywhere and at any time. Professionals are on the move, Boomers are retiring and career nomads are looking for change – early and often. We are seizing this opportunity to help clients find the right talent who are highly agile with specialized skills and expertise to help them drive superior performance.”
“We are pleased to find the ideal strategic home at Korn Ferry. We are excited about what the future will bring from this acquisition in terms of anticipated synergistic offerings for our clients as well as career opportunities for our employees,” said Randy Marmon, Lucas Group President and CEO.
Together, Korn Ferry and Lucas Group share more than a century of search experience. Founded in 1970 and headquartered in Atlanta, Lucas Group is a leading professional search and contract staffing firm, targeting middle market businesses. Key areas of focus span specializations such as accounting & finance, human resources, information technology, legal, military transition, sales & marketing, and supply chain & operations.
The broader professional search and contract staffing market is a fragmented, multi-billion-dollar global opportunity. The addition of Lucas Group to Korn Ferry’s broader talent acquisition portfolio—spanning Executive Search, Recruitment Process Outsourcing, and Professional Search—is expected to accelerate Korn Ferry’s ability to capture additional share of this significant market.
Terms of the deal were not disclosed. Upon closing, the acquisition is expected to be immediately accretive to Korn Ferry’s adjusted earnings.
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We work with our clients to design optimal organization structures, roles, and responsibilities. We help them hire the right people and advise them on how to reward and motivate their workforce while developing professionals as they navigate and advance their careers.
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 consummation of the transaction, the expected benefits of the transaction, including future financial and operating results, market share, 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; the risk that the transaction disrupts current plans and operations of Korn Ferry and/o of Lucas Group as a result of the announcement, pendency or consummation of the transaction; the ability to successfully integrate the operations and employees of Lucas Group 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 Lucas Group or their respective affiliates following announcement of the transaction; changes in applicable laws or regulations; the possibility that Korn Ferry or Lucas Group 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.
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