First Advantage Corporation (NASDAQ:FA), a leading global provider of employment background screening, identity, and verification solutions, today announced that it has completed its acquisition of Sterling Check Corp. (the “transaction”). Valued at $2.2 billion, including the assumption of Sterling’s outstanding debt, the acquisition combines industry leading platforms and innovative solutions to deliver an enhanced customer experience while expanding and diversifying First Advantage’s vertical and geographic exposure, creating a more well-balanced portfolio.
“We are thrilled to welcome Sterling’s talented team to First Advantage as we bring together our businesses and shared cultural attributes to meet the needs of our customers and deliver value for our shareholders. With a common focus on exceptional customer service and a commitment to delivering high-quality, cost-effective solutions, we will be able to enhance our value proposition by helping customers hire smarter, onboard faster, and protect their most important assets: people,” said Scott Staples, Chief Executive Officer of First Advantage.
Staples continued, “The acquisition of Sterling positions First Advantage for long-term value creation, unlocking efficiencies and opportunities for additional growth and investment in new technology solutions, including AI-driven automation, while further diversifying our business for increased resilience. Looking forward, we are committed to facilitating a seamless integration of our corporate cultures, continuing to provide world-class solutions to our customers, quickly and effectively executing our synergy plans, and de-leveraging our balance sheet. We look forward to sharing additional details about our go-forward organizational structure and strategy during our upcoming third quarter 2024 earnings call.”
Acquisition Highlights
First Advantage and Sterling offer complementary technology solutions that enable employers across healthcare, retail & e-commerce, transportation, manufacturing, financial services, and other industries to mitigate risk and hire the best talent. First Advantage is dedicated to delivering excellent service and exceptional customer and applicant experiences that are mobile-first, highly intuitive, and data-driven. Customers will benefit from accelerated investment in innovation and access to a broader suite of products and solutions to meet their needs, fueling the growth of the combined company.
Building on pro forma combined revenue of approximately $1.5 billion, the transaction is expected to deliver between $50 million and $70 million in run-rate synergies, implying immediate double-digit EPS accretion on a run-rate synergy basis. The combined company will have greater diversification of revenue across customer segments, industries, and geographies, reducing seasonality and improving resource planning and operational efficiency.
For additional information regarding the transaction, please visit https://fast.fadv.com.
