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LOS ANGELES - Korn Ferry (NYSE: NYSE:KFY), a renowned organizational consulting firm, has completed the acquisition of Trilogy International, a UK-based company specializing in digital interim talent. This move aims to enhance Korn Ferry's Professional Search & Interim business by extending its reach and scaling its solutions at the nexus of talent, strategy, and transformation.
Trilogy International, with its headquarters in London, is recognized for its digital interim professional offerings across the EMEA region and the United States. The company's integration into Korn Ferry is anticipated to benefit both entities by leveraging Trilogy's market presence and Korn Ferry's extensive global network and digital expertise.
Gary D. Burnison, CEO of Korn Ferry, expressed satisfaction with the acquisition, noting Trilogy's position at the forefront of change and its suitability for Korn Ferry and its clientele. Ivan Jackson, Co-Founder and Managing Director of Trilogy, also welcomed the new partnership, emphasizing the potential growth and value creation from tapping into Korn Ferry's resources.
The financial terms of the deal have not been disclosed. However, the acquisition is expected to immediately contribute to Korn Ferry's adjusted earnings.
Korn Ferry advises its clients on designing optimal organizational structures and roles and assists in hiring the right personnel, motivating the workforce, and developing professionals throughout their careers.
This press release includes forward-looking statements, which are subject to risks and uncertainties. Readers should be cautious about relying on these statements, as actual results may differ materially due to various factors, including potential disruptions from the acquisition or challenges in integrating Trilogy's operations and employees into Korn Ferry.
The information for this article is based on a press release statement.
In other recent news, Korn Ferry, a global organizational consulting firm, announced the appointment of Russ Hagey, a former Bain & Company leader, to its board of directors. Hagey, who has over 40 years of experience in talent management and consulting, is expected to contribute to the board's strategy and oversight as Korn Ferry navigates the evolving landscape of the consulting industry.
In financial developments, Korn Ferry reported strong results for Q1 FY2025, with fee revenue and profitability meeting or exceeding company expectations. The company highlighted an expanded adjusted EBITDA margin and a 36% increase in employee productivity from pre-pandemic levels. Korn Ferry's capital allocation strategy included significant returns to shareholders, new hires, digital upgrades, and technology investments.
Despite a decline in Professional Search and interim fee revenues, the company sees signs of stabilization and expects growth in its net consultants across various business segments in the coming year. Korn Ferry anticipates Q2 fee revenue to be between $655 million and $685 million, with an adjusted EBITDA margin of 6.3% to 16.7% and GAAP diluted earnings per share of $1.11 to $1.23. However, the decline in flights to China has negatively impacted the business, leading to decreased revenue. Despite this setback, the company remains confident in capturing future growth opportunities with its improved investable cash position of $553 million.
InvestingPro Insights
Korn Ferry's acquisition of Trilogy International aligns with its strong financial position and growth strategy. According to InvestingPro data, Korn Ferry boasts a market capitalization of $3.67 billion and has demonstrated robust financial health. The company's P/E ratio of 19.94 suggests investors are willing to pay a premium for its earnings, potentially reflecting confidence in its growth prospects and strategic moves like the Trilogy acquisition.
InvestingPro Tips reveal that Korn Ferry holds more cash than debt on its balance sheet, which provides financial flexibility for acquisitions and expansion. This strong cash position is particularly relevant in the context of the Trilogy International purchase, as it indicates Korn Ferry's ability to fund strategic growth initiatives without overextending its financial resources.
Additionally, Korn Ferry has raised its dividend for 4 consecutive years, showcasing a commitment to shareholder returns alongside its growth strategy. This consistent dividend growth, coupled with a current dividend yield of 2.09%, may appeal to investors seeking both growth and income.
For readers interested in a deeper dive into Korn Ferry's financial health and growth prospects, InvestingPro offers 8 additional tips that could provide valuable insights for investment decisions.
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