Shares of Heidrick & Struggles International surged 20% on Monday, after the executive search firm agreed to be taken private in a deal by a consortium of investors, including Advent International and Corvex Private Equity.
The stock, which hit its highest level in more than 24 years, is set for its biggest one-day percentage gain since February 2019.
The consortium will acquire all of the Chicago-based firm's outstanding shares for $59 apiece, valuing Heidrick & Struggles at $1.3 billion.
The price
represents a premium of more than 21% to the company's last close of $48.68.
CEO Tom Monahan will continue to lead Heidrick & Struggles after it becomes a privately-held entity, with the transaction expected to close in the first quarter of 2026, subject to approval.
The move comes a month after Thoma Bravo agreed to take private human resources company Dayforce for $12.3 billion.
Buyouts have made a comeback after years of muted activity, fueled by private equity firms and sovereign wealth funds as they target companies across sectors.
Advent International has been at the helm of the recent buyouts. It had made an offer to buy Canadian parka maker Canada Goose and took over Swiss microchip maker U-blox in August.
A Reuters report on September 18 said the private equity firm had been exploring a possible bid for British fund administration firm JTC, citing people familiar with the matter.
Heidrick & Struggles reported its second-quarter results early in August, with revenue exceeding analysts' estimates.
Its stock was last up 19.7% at $58.28.
(Reporting by Purvi Agarwal in Bengaluru; Editing by Shreya Biswas)
