M&A · Tech · Services-Computer Processing & Data Preparation
First Advantage Corp to acquire Sterling Check Corp.
Announced Feb 29, 2024 · Closed Oct 31, 2024
Deal value$2.20BEV $2.02B
Premium35.0%To unaffected price
EV / Adj. EBITDA14.7x2.8x EV / Revenue
ConsiderationCash and stock$16.73 per share
Transaction
- Acquirer
- First Advantage Corp (FA)
- Target
- Sterling Check Corp. (STER)
- Buyer type
- Strategic
- Offer price per share
- $16.73
- Enterprise value
- $2.02B
- Status
- Closed Oct 31, 2024
Deal protections
- Break fee (target pays)
- $66.3M · 3.0%
- Reverse fee (buyer pays)
- $100M · 4.5%
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- JPMorgan, BofA Securities, Barclays, BMO Capital Markets, Jefferies, RBC Capital Markets
- To the target
- Goldman Sachs, Citigroup
- Citigroup fee
- $20.0M
Sector context · Tech
- Comparable deals
- 57 in the prior 24 months
- Premium
- 35.0% vs. 46.2% sector median
- EV / Adj. EBITDA
- 14.7x vs. 15.9x sector median
- Break fee
- 3.0% vs. 3.0% sector median
Timeline
- AnnouncedFeb 29, 2024
- Proxy filedJun 11, 2024
- Definitive proxyJun 11, 2024
- Shareholder vote—
- ClosedOct 31, 2024
Valuation · fairness opinions
Trading comparables$10.20$17.80
Precedent transactions$16.90$18.80
Discounted cash flow$11.60$16.40
Future share price$10.40$15.70
Future share price$14.70$16.65
Offer $16.73
Implied value per Sterling Check Corp. share by analysis, from Citigroup.