Korn Ferry (NYSE: KFY), an executive search firm, has agreed to buy privately-held Hay Group for $452 million in cash and stock. The buyer will pay $252 million in cash and issue $200 million in common stock. The company will fund the cash portion of the purchase with debt.

Hay Group, founded in 1943, provides a range of human resources and talent recruitment services for business. The Philadelphia-based target has about $40 million in annual Ebitda and $500 million in revenue. The two companies by combining, they will be able to provide more consulting and recruiting services to their clients.

“The world of business is undergoing an unprecedented macroeconomic shift that is reshaping the landscape around leadership and talent. Because of this, we believe a new conversation about people is required,” Hay Group said in a message posted on the company’s website.

Earlier in 2015, Los Angeles-based Korn Ferry completed the acquisition of another executive search firm in Pivot Leadership.

Bank of America Merill Lynch, Morrison & Foerster LLP along with Gibson Dunn Crutcher LLP are advising Korn Ferry. Goldman Sachs & Co. (NYSE: GS) and Sullivan & Cromwell LLP are Hay Group’s advisers.

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