1999
PA Consulting Group enters into letter of intent to sell its search and selection recruitment business to Korn/Ferry
-
16 September 1999
PA Consulting Group, the management, systems and technology consultancy, announced today that it has entered into a letter of intent to sell the global recruitment part of its business, which specialises in middle management recruitment, to Korn/Ferry International, the world’s largest executive search firm.
The offer, which covers all of PA’s Executive Search & Selection business worldwide, is still subject to due diligence and other conditions, and is based on an anticipated rapid completion timescale. The purchase price is a 1.05 multiple of revenues over the last 12 months and will be denominated in sterling. Korn/Ferry has also expressed a potential interest in purchasing PA’s Assessment and Development business in the same timeframe and this will be the subject of separate discussions.
PA’s Executive Chairman, Jon Moynihan, commented,
"This is a strategic decision based on what we believe is best for PA and best for our recruitment business. Korn/Ferry’s approach, along with Futurestep – its Internet, middle management recruitment business - makes excellent business sense for both organisations in terms of geography and market expertise. Most importantly, it allows our recruitment business to achieve its strategic goals of US and Internet expansion faster than it would have done alone. Given the strength of the Korn/Ferry brand, this deal represents a tremendous opportunity for our recruitment business."
The majority of PA staff will become part of Futurestep and several PA consultants will also be brought into Korn/Ferry’s executive search business in Europe and Asia/Pacific.
Windle B Priem, President and Chief Executive Officer of Korn/Ferry International, said:
"PA Consulting Group’s search and selection recruitment business has an excellent reputation and is focused mainly on the middle market. Its operations will be complementary to Futurestep, particularly in a broad range of European and Asian markets. Korn/Ferry and PA’s search and selection business share a common commitment to partnering with clients in the creation of competitive advantage – identifying and delivering the resources and expertise companies need to grow their businesses. The deal brings together two companies that share a reputation for recruiting excellence."
For more information, please contact:
|
| Heather Smith |
| PA Consulting Group |
| 123 Buckingham Palace Road |
| London |
| SW1W 9SR |
| United Kingdom |
|
|
Tel: +44 20 7312 4975 |
|
Fax: +44 20 7312 4639 |
|
E-mail:
heather.smith@paconsulting.com |
|
|
|
Notes to editors
Korn/Ferry International is the world's leading executive search firm and has the broadest global presence in the executive search industry with over 70 offices across 40 countries. For the latest financial year to 30 April 1999, Korn/Ferry reported revenues of US$373 million. Last year, Korn/Ferry performed over 6,700 assignments for more than 4,100 clients, including around 43 per cent of the Fortune 500.
Last year Korn/Ferry launched Futurestep, the first Internet-based electronic search business, to complement its traditional search expertise, targeted at mid-level managers. Combining the power of Internet technology with the skill sets of recruitment professionals, Futurestep currently attracts an average of 25,000 new candidates per month.
PA Consulting Group is a leading management, systems and technology consultancy, with a unique commitment to the integration of these capabilities. Established almost 60 years ago, and operating world-wide from around 50 offices in some 20 countries, PA draws on the knowledge and experience of about 2,700 employees, whose skills span the initial generation of ideas and insights all the way through to detailed implementation, including:
- Strategic management, and managing for shareholder value
- Accelerating business growth, especially through innovation
- Improving business design, including customer relationship management, enterprise-wide systems for the supply chain, and full e-business solutions
- Mobilising human resources
- Delivering projects and programmes
PA focuses on creating benefits for clients rather than merely proposing them, and this focus is supported by an outstanding implementation track record in every major industry and for governments around the world. PA also develops leading edge technology both for its clients and within its own portfolio of venture companies in areas ranging from software to wireless technology to life sciences.
PA distinguishes itself from its competitors through the range and quality of its people, its development and use of technology, and also its independence. PA's work in every area from strategic management to project delivery is enhanced by its expertise in all the other areas. PA's consultants, whatever their special skills, all share:
- a highly commercial approach to clients' problems and opportunities
- a technologically sophisticated view of both the industry sectors we serve and the solutions we deliver
- a culture of respect, collaboration and flexibility in working with our clients to achieve their aims
Adding value to clients, from insight to implementation, is ingrained at PA through our culture and tradition, and also through our compensation and ownership philosophy. PA is owned by its employees, with everyone at PA entitled to a stake in the company, and our reward systems are also directly related to the results created for clients. This builds a virtuous circle, as we know that the only way we can create value for ourselves is by creating value for our clients first. The value we create for clients and within PA helps us to attract the best people in the world to PA, and to invest in more leading edge technologies, thereby allowing us to increase further the value we bring to our clients. We are proud that our clients say "PA makes it happen"
|
