First Advantage completes acquisition of Sterling Check for $2.2B

First Advantage (FA) has completed its acquisition of Sterling Check. 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. 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.