First Advantage to buy background screening firm Sterling Check in $2.2 bln deal (updated)

Sterling Check

29/02/2024 11:19

(Adds deal details in paragraphs 2-3)
       Feb 29 (Reuters) - Background screening services
provider First Advantage  FA.O  will buy rival Sterling Check
 STER.O  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)
 ((Samrhitha.A@thomsonreuters.com;))