US-listed global recruiter Korn Ferry is to buy global people strategy and organisational performance adviser Hay Group for US$452m (£296m).

Hay Group is to combine with Korn Ferry’s Leadership and Talent Consulting (LTC) division, which will be rebranded as Hay Group. 

Hay Group chief executive Stephen Kaye will continue to serve in this role with Korn Ferry.

The completion of the transaction, which is subject to Hay Group shareholder approval, receipt of anti-trust clearance and other customary conditions, is expected to close before the end of this year. 

In connection with the transaction, Korn Ferry has amended its credit agreement with Wells Fargo Bank, National Association, which includes access to a new $150m delayed draw term loan facility.

Korn Ferry’s statement announcing the deal said Hay Group generates about $500m in revenue. It is expected synergies will save about $20m in the first year after the deal.

Korn Ferry received legal advice from Morrison & Foerster and Gibson, Dunn & Crutcher, and financial advice from Bank of America Merrill Lynch; Hay Group received legal advice from Sullivan & Cromwell and financial advice from Goldman Sachs & Co.

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