Industrials Company First Advantage Announces Acquisition of Sterling Check

First Advantage (NASDAQ:FA) has announced an acquisition of Sterling Check (NASDAQ:STER) that is expected to be completed in Q3 of 2024.

Under the terms of the agreement, First Advantage has agreed to give Sterling Check $2.20 billion in cash & stock in exchange for STER stock.

About The Companies Involved

First Advantage Corp is a leading global provider of employment background screening and verification solutions. The company delivers innovative services and insights that help its customers manage risk and hire the best talent.

Sterling Check Corp is a global provider of technology-enabled background and identity verification services. It offers a hiring and risk management solution that begins with identity verification, followed by criminal background screening, credential verification, drug and health screening, processing of employee documentation required for onboarding, and ongoing risk monitoring.

How An Acquisition Works

An acquisition is when one company, called the acquiring company, buys most or all of another company's, or target company's, shares to gain ownership. Buying more than 50% of a company's stock allows the the acquirer to make decisions without the approval of the company's shareholders.

An acquisition can potentially lead to a merger with the parent company, which makes it similar to a merger. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.

Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.

This article was generated by Benzinga's automated content engine and reviewed by an editor.