Heidrick & Struggles Finalizes Agreement to Become Private Company Led by Advent International and Corvex

Heidrick & Struggles Transitions to Private Ownership

Heidrick & Struggles International, Inc. (NASDAQ: HSII), a leading global executive consulting firm, has announced a definitive agreement to become a private entity. This landmark deal, led by Advent International and Corvex Private Equity, involves a substantial financial transaction valued at around $1.3 billion. Shareholders will receive $59.00 per share in cash, which represents a significant premium of approximately 26% over the average trading price in the last three months.

Details of the Transaction

The agreement was struck with a consortium of investors, which notably includes substantial involvement from several senior executives within Heidrick. Under the terms of this deal, Heidrick will transition away from being publicly listed, allowing the company to focus on expanding its leadership consulting services. The leadership team will remain intact, with CEO Tom Monahan and President Tom Murray at the helm for this new chapter.

This shift to a private company enables Heidrick to rapidly grow its influence in areas such as Executive Search, Interim Talent Solutions, Leadership Assessment, and Consulting related to Purpose, Culture, and Performance. The investment will facilitate a robust infusion of resources, allowing Heidrick to innovate and enhance its client offerings significantly. Furthermore, a new stock incentive plan for current and future partners is set to be introduced, complementing existing compensation programs. This initiative aims to attract, retain, and develop top talent in the industry, ensuring that Heidrick stays ahead in a competitive market.

Strategic Implications

Tom Monahan commented on the significance of the partnership with Advent and Corvex, expressing enthusiasm about the unique financial and strategic resources they bring to the table. By leveraging this expertise, Heidrick can build even deeper global relationships with clients, fostering sustainable growth. The Board Chairman, Adam Warby, echoed this sentiment, stating that the negotiation process, which involved various market participants, will yield immediate value for shareholders and position the firm strongly for future endeavors.

Advent's Managing Director, John DiCola, reinforced the firm’s long-standing trust with executives due to its deep expertise in executive advisory roles. Corvex Private Equity co-founder, Joe Costa, expressed excitement about the collaboration to accelerate Heidrick’s growth trajectory.

The Future of Heidrick & Struggles

Once the transaction reaches completion, expected by the first quarter of 2026, Heidrick’s common stock will no longer be listed on the NASDAQ or any other public exchange. Despite this transition, the company assures that it will maintain its headquarters in Chicago, Illinois, and continue operating under the Heidrick & Struggles name.

Investment banks such as Deutsche Bank, UBS Investment Bank, and Santander have committed to financing this deal. BofA Securities serves as the exclusive financial advisor to Heidrick while various legal teams support both parties during this transition.

Heidrick & Struggles, founded over 70 years ago, has been influential in leading consulting and talent solutions globally. The firm continues to merge innovative solutions with its expertise to face the dynamic challenges within the leadership advisory landscape, ultimately transforming global companies, one leadership team at a time. Advent International and Corvex’s involvement is poised to amplify this mission even further.

Heidrick & Struggles’ commitment to enriching its client partnerships and fostering leadership will shape its path moving forward, ensuring continued trust and respect from stakeholders worldwide. The exchange of public accountability for private agility is set to empower Heidrick to further its vision and service offerings, bridging leaders and organizations effectively in a complex and changing world.

Conclusion

With this strategic transformation, Heidrick & Struggles stands on the brink of a promising future. As a private entity, the company is prepared to reinvest in its capabilities, align with cutting-edge solutions, and provide unparalleled value to its clientele, continuing its legacy as a foremost leader in executive consulting. This evolution marks not just a new operational model but also a commitment to excellence and growth in the talent management domain.