Back to top

Image: Bigstock

Heidrick & Struggles Soars 19.6% on Go-Private Deal Announcement

Read MoreHide Full Article

Key Takeaways

  • Heidrick & Struggles surged 19.6% after announcing a $1.3B go-private acquisition deal.
  • The $59-per-share all-cash offer marks a major milestone in HSII's transformation strategy.
  • The buyout highlights continued private equity interest in human capital and consulting firms.

Shares of Heidrick & Struggles International, Inc. (HSII - Free Report) surged 19.6% on Oct. 6, after the global executive search and consulting firm announced that it had entered into a definitive agreement to be acquired by a private investment consortium in a deal valued at approximately $1.3 billion. The all-cash transaction, priced at $59 per share, represents a substantial premium over the company’s prior closing price. The deal marks a major milestone for HSII, which has evolved from a traditional executive search business into a broader leadership advisory firm with a strong presence in organizational consulting, culture shaping and on-demand talent solutions.

Over the past few years, HSII, a Zacks Rank #2 (Buy) company, has successfully diversified its offerings to include digital transformation and talent analytics, allowing it to compete more effectively with larger rivals such as Korn Ferry (KFY - Free Report) and ManpowerGroup Inc. (MAN - Free Report) . KFY and MAN currently carry a Zacks Rank #3 (Hold). Over the past year, HSII has gained 58.5% compared with its peer group’s 18.7% growth. 

Zacks Investment Research
Image Source: Zacks Investment Research

HSII’s expected earnings growth rate for the next year is 17.6%. The Zacks Consensus Estimate for its current-year earnings has improved 2.4% over the past 60 days. It has a VGM Score of A.

Market participants interpreted the acquisition as a signal that private equity continues to see value in professional services and human capital businesses, particularly those with strong client relationships. HSII stock opened sharply higher on Monday and maintained gains throughout the session, closing near the deal price. In contrast, the broader market saw mixed results, with the Dow Jones Industrial Average slightly lower and the S&P 500 and Nasdaq Composite reaching record highs on the back of renewed enthusiasm for artificial intelligence and semiconductor stocks. Investors appear enthusiastic about the buyout, which promises immediate value realization for shareholders in a volatile equity market environment.

The company’s board of directors has unanimously approved the transaction, which is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions. Upon completion, Heidrick & Struggles will become a privately held entity, and its shares will be delisted from the Nasdaq.

Bottom Line

The sharp rally in HSII’s stock underscores investor appetite for merger and acquisition activity amid ongoing market volatility. For many, the buyout represents both an affirmation of the firm’s enduring value and a sign that strategic investors are still willing to pay a premium for established, resilient business models in the evolving consulting landscape.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ManpowerGroup Inc. (MAN) - free report >>

Korn/Ferry International (KFY) - free report >>

Heidrick & Struggles International, Inc. (HSII) - free report >>

Published in