First Advantage Enters Definitive Purchase Agreement To Acquire Sterling Check For $2.2B In Cash And Stock, Including Sterling's Outstanding Debt
Portfolio Pulse from Benzinga Newsdesk
First Advantage has agreed to acquire Sterling Check for $2.2 billion, including Sterling's outstanding debt. The deal includes $1.2 billion in cash and 27.15 million shares of First Advantage stock. Sterling shareholders can choose to receive $16.73 in cash or 0.979 shares of First Advantage stock per Sterling share. Entities affiliated with Goldman Sachs, owning 52.8% of Sterling, support the agreement.
February 29, 2024 | 11:15 am
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POSITIVE IMPACT
Sterling Check is being acquired by First Advantage for a combination of cash and stock, with shareholders having a choice in compensation.
Sterling Check's shareholders stand to benefit from the acquisition through either cash compensation or shares in First Advantage. The choice between cash and stock allows shareholders to decide based on their investment strategy, potentially increasing the stock's attractiveness in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
First Advantage is acquiring Sterling Check for $2.2 billion, offering a mix of cash and stock to Sterling shareholders.
The acquisition could lead to short-term volatility in First Advantage's stock as markets digest the news and implications of the cash and stock deal. The long-term impact will depend on the integration success and synergies realized.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90