ST. PETERSBURG, Fla., Feb. 16 /PRNewswire-FirstCall/ -- First Advantage Corporation , a global risk mitigation and business solutions provider, and Accufacts Pre-Employment Screening, Inc. (BULLETIN BOARD: APES) , an employment screening company, today jointly announced the execution of an agreement for First Advantage to purchase Accufacts, subject to shareholder approval. This transaction, when completed, will increase First Advantage's market share of small and mid-market clients served by its Employer Services segment.
Under the terms of the agreement, First Advantage will purchase Accufacts for approximately $5 million in cash, or $0.75 per share of Accufacts' stock. The transaction is expected to close on or before June 30, 2006, subject to majority approval by Accufacts' shareholders and other customary closing conditions.
Founded in 1994, Accufacts provides quality, timely background checks, drug testing and other information that supports employers' hiring decisions. The company's work spans the United States and various international regions, with all services delivered from its Longwood, Fla. corporate headquarters. Accufacts specializes in meeting the screening needs of small and mid-sized companies with a proprietary Web-based system that can be tailored to meet client demands.
The addition of Accufacts to First Advantage's employment screening operation will expand First Advantage's penetration of the small and mid-sized employer markets and provide opportunity to upsell its expanding human resource services offering to acquired clients. The company's Employer Services segment portfolio provides mid-sized and large domestic and international employers with a robust hiring solution that encompasses recruiting strategies, applicant tracking, tax credits and incentives screening, background screening, occupational health testing and more.
Philip Luizzo, president and chief executive officer of Accufacts Pre- Employment Screening, Inc., commented, "I am very pleased to present this transaction to Accufacts' shareholders. I believe, through this transaction, we now have the opportunity to contribute to the growth of a recognized screening industry leader while enhancing the services offered to our valued clients."
"Accufacts presents an opportunity for our Employer Services segment to gain significant traction in the extensive small business marketplace," said John Long, chief executive officer of First Advantage Corporation. "They offer a strong operation specifically designed to handle the screening needs of their clientele that will nicely complement our existing screening business."
Following closure, it is anticipated that the management and operations of Accufacts will remain in Longwood, Fla. The company's name will be changed to reflect the First Advantage brand as they continue to serve and grow their targeted client base as part of the Employer Services segment of First Advantage.
About Accufacts Pre-Employment Screening, Inc.
Accufacts Pre-Employment Screening, Inc. (BULLETIN BOARD: APES) is headquartered and maintains its operations center in Longwood, Fla. The company performs various types of pre-employment background screenings and provides other human resources-related information to its clients. Additional information may be obtained on the Internet at http://www.accufacts.com/.
About First Advantage Corporation
First Advantage Corporation combines industry expertise with information to create products and services that organizations worldwide use to make smarter business decisions. First Advantage is a leading provider of consumer credit information in the mortgage, automotive and subprime markets; business credit information in the transportation industry; lead generation services; motor vehicle record reports; supply chain security consulting; employment background verifications; occupational health services; applicant tracking systems; recruiting solutions; business tax consulting services; insurance fraud, corporate and litigation investigations; surveillance; computer forensics; electronic discovery; data recovery; due diligence reporting; resident screening; property management software; renters insurance and consumer location services. First Advantage ranks among the top three companies in all of its major business lines. First Advantage is headquartered in St. Petersburg, Fla., and has more than 3,700 employees in offices throughout the United States and abroad. More information about First Advantage can be found at http://www.fadv.com/.
First Advantage is a majority-owned subsidiary of The First American Corporation , a FORTUNE 500(R) company that traces its history to 1889. First American is America's largest provider of business information, supplying businesses and consumers with valuable information products to support the major economic events of people's lives. Additional information about the First American Family of Companies can be found at http://www.firstam.com/.
Certain statements in this press release, including those related to approval of the sale by Accufacts' shareholders and the consummation of the sale are forward-looking. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include: general volatility of the capital markets and the market price of the company's Class A common stock; the company's ability to successfully raise capital; the company's ability to identify and complete acquisitions and successfully integrate businesses it acquires; changes in applicable government regulations; the degree and nature of the company's competition; increases in the company's expenses; continued consolidation among the company's competitors and customers; unanticipated technological changes and requirements; the company's ability to identify suppliers of quality and cost-effective data, another risks identified from time-to-time in the company's SEC filings and in Accufacts' SEC filings. The forward-looking statements speak only as of the date they are made. Neither the company nor Accufacts undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Investors are advised to consult the company's and Accufacts' filings with the SEC, including their respective 2004 Annual Report on Form 10-K, for a further discussion of these and other risks.
Contacts:
Philip Luizzo Renee Svec
President and CEO Director - Marketing
Accufacts Pre-Employment Screening First Advantage Corporation
407.682.5051, ext. 160 727.214.3411, ext. 5212
© 2006 PR Newswire
