First Advantage to buy background screening firm Sterling Check in $2.2 billion deal

By Thomson Reuters Feb 29, 2024 | 5:22 AM

(Reuters) – Background screening services provider First Advantage will buy rival Sterling Check in a cash-and-stock deal valued at $2.2 billion, the company said on Thursday.

The deal consists of about $1.2 billion in cash and 27.15 million shares of First Advantage common stock. It values each share of Sterling Check at $16.73, which represents a premium of 35% to the closing price of the company’s stock on Wednesday.

Sterling shareholders are expected to own about 16% of the combined company after the close of the deal, while First Advantage investors will own about 84%.

(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shounak Dasgupta)