First Advantage Corporation to Acquire Sterling Check in a $2.20 Billion Deal

In a strategic move within the human capital management sector, First Advantage Corporation FA, a provider of technology solutions for screening, verification, safety, and compliance, has announced its intention to acquire Sterling Check Corp. STER, a New York-based background and identity services firm. The acquisition, expected to be finalized in the third quarter of 2024, has been agreed upon for a total consideration of $2.20 billion, which will include both cash and stock components.

Detailed Overview of Acquisition

Under the terms of this major transaction, Sterling Check shareholders are set to receive payment from First Advantage in an arrangement combining cash with shares of FA stock. This deal signifies a significant expansion of First Advantage's footprint in the employment verification and background check industry, further positioning the company as a leader in the market. The announcement has sparked interest among investors, with implications for both companies’ stocks STER, FA and potential ripple effects in the FOREX market, particularly concerning the British Pound FOREX:GBP, due to the global nature of the human capital management services sector.

Corporate Profiles

First Advantage Corporation FA operates globally, providing an array of advanced technology solutions aimed at enhancing human capital management through meticulous detection and verification processes. Headquartered in Atlanta, Georgia, FA's client base spans across diverse industries requiring rigorous background checks and security measures for their personnel.

Sterling Check Corp. STER, on the other hand, specializes in thorough background screening and identity services, with its headquarters firmly established in New York, New York. Its services are crucial for companies in high-trust industries to maintain integrity and compliance in their workforce.

The acquisition of STER by FA is expected to synergize the strengths of both entities, delivering enhanced capabilities and a wider range of services to their collective clientele. This move also reflects growing consolidation trends within the industry, as firms seek to capitalize on advanced technology and extensive databases to provide comprehensive security and verification solutions.

acquisition, industry, expansion