Executive search firm Korn/Ferry International Inc. (NYSE: KFY) signed a deal to acquire leadership advisory firm PDI Ninth House for $80 million in cash at closing plus an earn-out of up to $15 million. PDI Ninth House provides leadership assessments, leadership development services, coaching, online learning for leaders and leadership strategy services.
The deal marks the second major acquisition of a leadership consulting firm for Korn/Ferry. In September, it acquired Global Novations LLC for $35 million in cash plus an earn-out of $5 million, according to a filing with the U.S. Securities and Exchange Commission. Global Novations provides diversity and leadership offerings that include consulting, training, education and e-learning.
PDI Ninth House is on track for fee revenue of between $90 million and $100 million this year and is based in Minneapolis. Korn/Ferry expects to close the acquisition by the end of the year.
"We believe the 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," Korn/Ferry CEO Gary Burnison. "PDI Ninth House not only has capabilities that are a strong fit for our clients, but they share our same vision that despite all of the technological innovations of the past century, it is still great people that drive business success."
Korn/Ferry also today posted revenue of $196.2 million in its fiscal second quarter ended Oct. 31. Revenue was down 2.0 percent from the same period last year.