Korn/Ferry to Buy Local Firm for Up to $95M
Korn/Ferry International, a Los Angeles-based executive search firm, recently announced that it has reached a deal to pay up to $95 million to acquire Minneapolis-based PDI Ninth House.
PDI Ninth House—a 45-year-old provider of talent management and leadership development solutions, including online interactive learning tools—will become part of Korn/Ferry’s leadership and talent consulting segment. It will operate as a wholly owned subsidiary, according to a filing with the U.S. Securities and Exchange Commission.
Korn/Ferry said it expects the deal to close by the end of this year. It will pay about $80 million in cash at closing to acquire PDI, which it says has between $90 million and $100 million in annual fee revenue. Under the terms of the deal, Korn/Ferry will pay up to $15 million more based on financial results during the 18 months following the acquisition. Korn/Ferry expects the purchase to be accretive to its earnings next year.
PDI Ninth House has nearly 200 consultants and serves clients on six continents, according to its website.
Korn/Ferry operates a Minneapolis office. Thursday calls to the company inquiring whether PDI’s operations will merge with the local Korn/Ferry office were not immediately returned.
“PDI Ninth House looks forward to joining Korn/Ferry,” PDI president and CEO R.J. Heckman said in a statement. “I believe that with the combined strength of our complementary services and aligned approach to R&D and developing new and innovative solutions, we will be unlike anything ever seen in the leadership industry.”
PDI Ninth House will benefit from Korn/Ferry’s “powerhouse brand” and global reach, Heckman added.
Korn/Ferry International CEO Gary Burnison said in a statement that the companies’ “combined suite of talent management offerings, rich intellectual property, and world-class people will immediately increase Korn/Ferry’s depth and scale in being the most relevant leadership organization in the world.”