Heidrick & Struggles Surges on $1.3B Private Equity Deal
The executive search firm's shares jumped over 19% after agreeing to an all-cash acquisition by an investor group led by Advent International and Corvex.
Heidrick & Struggles (NASDAQ: HSII), a global leader in executive search and leadership consulting, will be taken private in a deal valued at approximately $1.3 billion. The firm has with an investor consortium led by private equity giants Advent International and Corvex. News of the acquisition sent the company's stock soaring over 19%.
The all-cash transaction will see Heidrick & Struggles stockholders , a figure that represents a 26% premium to the company's 90-day volume-weighted average share price. The deal received unanimous approval from Heidrick's Board of Directors, signaling strong internal support for the move.
The market reacted with immediate enthusiasm. Following the announcement, in premarket trading, reflecting investor confidence in the valuation and the strategic direction offered by the acquisition. The firm has been an attractive target, entering the deal from a position of and a balance sheet holding more cash than debt.
Under the new ownership, Heidrick & Struggles will continue to operate under its established brand with its headquarters remaining in Chicago. The current leadership, including CEO Tom Monahan, is expected to stay in place. Advent and Corvex have stated their intent to invest in the firm's talent and technology to accelerate global growth.
The transaction is expected to close in the first quarter of 2026, pending shareholder and regulatory approvals. Upon completion, Heidrick & Struggles' common stock will be delisted from the Nasdaq stock exchange, marking a new chapter for the nearly 70-year-old company as a private entity.