|[February 16, 2017]
Huron to Acquire Growth Strategy Firm Innosight
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
"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
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
"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 wil 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.
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