First Advantage Corporation announced on October 31, 2024, the completion of its acquisition of Sterling Check Corp., valued at $2.2 billion, including Sterling's outstanding debt. This strategic transaction combines industry-leading platforms and solutions, aiming to enhance customer experience and expand First Advantage's vertical and geographic market exposure. The acquisition effectively doubles First Advantage's scale and diversifies its customer base.
CEO Scott Staples stated that the acquisition positions First Advantage for long-term value creation by unlocking efficiencies and opportunities for investment in new technology solutions, including AI-driven automation. The combined entity is expected to achieve greater revenue diversification across customer segments, industries, and geographies, which should reduce seasonality and improve operational efficiency.
The transaction is projected to deliver between $50 million and $70 million in run-rate synergies, implying immediate double-digit EPS accretion on a run-rate synergy basis. First Advantage is committed to a seamless integration of corporate cultures, providing world-class solutions, executing synergy plans, and deleveraging its balance sheet. Further details on the organizational structure and strategy are expected during the upcoming third quarter 2024 earnings call.
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