CHICAGO--(BUSINESS WIRE)--Global professional services firm Huron (NASDAQ: HURN) today announced that it has entered into an agreement to acquire Innosight Holdings LLC, a growth strategy firm focused on helping companies navigate disruptive change, enable innovation and manage strategic transformation. When combined, Huron and Innosight will use their strategic, operational and technology capabilities to help clients across multiple industries develop pioneering solutions to address disruption and achieve sustained growth.
“No industry is immune to disruption. Faced with increased competition, often from unconventional sources, organizations are forced to rethink their historical strategies to stay ahead of market forces and changing customer preferences,” said James H. Roth, chief executive officer and president of Huron. “Together, we will provide a full spectrum of services - from strategy to execution - that will help organizations think, plan and act differently to confront disruption and accelerate growth.”
Built by leading strategic thinkers and co-founded by renowned strategy consultant Mark Johnson and Harvard Business School professor and author Clayton Christensen, the world’s foremost authority on disruptive innovation, Innosight is a trusted partner to Fortune 500 companies and other leaders looking to strengthen today’s business while creating tomorrow’s growth engines. The firm’s innovation and transformational strategies have proven successful in industries undergoing disruptive change such as aerospace, automotive, energy, financial services, healthcare, insurance, life sciences and retail.
“Companies are under mounting pressure to satisfy a range of competing interests,” said Scott Anthony, managing partner at Innosight, who will become a Huron managing director. “But shifting stakeholder expectations, combined with disruptive change, create significant opportunities for today’s leaders. Huron and Innosight’s combination of capabilities in strategy, operations, technology and analytics will enable us to offer transformative change to address these opportunities.”
Formed in 2000, Innosight recognized that traditional approaches to strategy and growth were not enough to help companies accelerate transformational change. This became the basis for its “future back” approach to strategy. Organizations that apply Innosight’s approach build leadership alignment on a vision for the future and create portfolios of new innovations and growth businesses that address changing customer needs and outpace their competitors.
Applying the same methodology alongside Huron’s deep industry expertise in healthcare, education and life sciences, the combined firms will help leaders in these critical industries successfully navigate changing market dynamics, regulations and consumer expectations to grow for the long-term.
“Huron and Innosight are a natural fit,” Christensen said. “They are both passionate about creating repeatable and sustained growth for their clients. Together they are uniquely positioned to build resilience in today’s business while at the same time creating future growth engines.”
Innosight has more than 90 employees and a global footprint with locations in the United States, Singapore and Switzerland.
Under the terms of the purchase agreement, Huron will purchase Innosight Holdings, LLC for $100 million upon closing, consisting of $90 million in cash and $10 million in Huron common stock, plus contingent consideration of up to $35 million if specific financial performance targets are met over a four-year period. The cash component of the transaction will be financed with cash on hand and borrowing under the company’s senior secured credit facility. The shares of Huron common stock will not be registered under the Securities Act of 1933 and will be subject to restrictions on transfer under applicable securities law.
For reporting purposes, Innosight will be included in the Business Advisory segment. The transaction is expected to close in March 2017, and is subject to customary closing conditions.
CONFERENCE CALL AND WEBCAST
The company will host a conference call and webcast Friday, February 17, 2017, at 7:30 a.m. Eastern Time (6:30 a.m. Central Time). The conference call is being webcast by NASDAQ OMX and can be accessed at Huron’s website at http://ir.huronconsultinggroup.com. To participate by telephone, the dial-in number is (844) 413-0948 with passcode 68344625. A replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter.
A supplemental presentation that will be discussed during the webcast will be made available on the Investor Relations page of the company's website at http://ir.huronconsultinggroup.com prior to the webcast, and will be available for 90 days thereafter.
Huron is a global professional services firm committed to achieving sustainable results in partnership with its clients. The company brings depth of expertise in strategy, technology, operations, advisory services and analytics to drive lasting and measurable results in the healthcare, higher education, life sciences and commercial sectors. Through focus, passion and collaboration, Huron provides guidance to support organizations as they contend with the change transforming their industries and businesses. Learn more at www.huronconsultinggroup.com.
Innosight is a growth strategy consulting firm focused on helping organizations design and create the future, instead of being disrupted by it. As the leading authority on disruptive innovation and strategic transformation, Innosight works with clients across a range of industries to identify new growth opportunities, build new ventures and capabilities, and accelerate organizational change. With offices in the United States, Switzerland and Singapore, Innosight serves leading organizations around the world. Learn more at www.innosight.com.
Statements in this press release that are not historical in nature, including those concerning the Company’s current expectations about its future requirements and needs, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as “may,” “should,” “expects,” “provides,” “anticipates,” “assumes,” “can,” “will,” “meets,” “could,” “likely,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates,” “plans,” “continues,” or “outlook” or similar expressions. These forward-looking statements reflect our current expectations about our future requirements and needs, results, levels of activity, performance, or achievements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: failure to achieve expected utilization rates, billing rates and the number of revenue-generating professionals; inability to expand or adjust our service offerings in response to market demands; our dependence on renewal of client-based services; dependence on new business and retention of current clients and qualified personnel; failure to maintain third-party provider relationships and strategic alliances; inability to license technology to and from third parties; the impairment of goodwill; various factors related to income and other taxes; difficulties in successfully integrating the businesses we acquire and achieving expected benefits from such acquisitions; failure to complete the pending acquisition of Innosight Holdings, LLC or any material delay in the timing of such acquisition; risks relating to privacy, information security, and related laws and standards; and a general downturn in market conditions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including, among others, those described under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015, that may cause actual results, levels of activity, performance or achievements to be materially different from any anticipated results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. We disclaim any obligation to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.