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First Advantage Corporation (NASDAQ:FA), a provider of business services, announced today that it is proceeding with the acquisition of Sterling Check Corp, aiming to finalize the transaction in Q4 2024. The merger will result in Sterling becoming a wholly-owned subsidiary of First Advantage.
The company has begun the process for Sterling shareholders to elect the form of merger consideration they wish to receive. On Thursday, the necessary election form was distributed to Sterling's record holders by Equiniti Trust Company, the appointed exchange agent.
This form is integral to the stockholder election process and must be submitted by a deadline to be announced at least three business days in advance. The cutoff will be 5:00 p.m. New York City time, five business days before the estimated closing date of the merger.
D.F. King & Co., Inc. has been engaged as the information agent to aid shareholders during the election process. Any inquiries or requests for assistance can be directed to the exchange agent or the information agent.
Additionally, Fidelity Stock Plan Services, LLC is administering the election process for eligible holders of Company Common Stock Equivalents and unvested shares of Sterling Common Stock, which commenced on the same day.
The merger agreement between First Advantage and Sterling was initially announced on February 28, 2024. The completion of the merger is subject to customary closing conditions, including regulatory approvals. While the companies anticipate a Q4 2024 close, there is no certainty regarding the exact timing of the transaction's completion.
InvestingPro Insights
As First Advantage Corporation (NASDAQ:FA) advances towards the acquisition of Sterling Check Corp, it's crucial for investors to consider the company's financial health and market performance. According to InvestingPro data, First Advantage boasts a market capitalization of $2.76 billion and an impressive gross profit margin of 49.5% over the last twelve months as of Q2 2024, which indicates strong profitability potential.
Despite a slight revenue decline of 2.89% over the same period, the company's liquid assets surpass its short-term obligations, providing financial stability. Additionally, the company has been trading near its 52-week high, with a price 98.04% of that peak, reflecting positive investor sentiment.
Two InvestingPro Tips that stand out for First Advantage include the expectation of net income growth this year and the company's operation with a moderate level of debt. These factors could be particularly significant for investors considering the company's upcoming merger with Sterling Check Corp.
For those interested in a more comprehensive analysis, there are additional InvestingPro Tips available, including insights on earnings revisions and valuation multiples, which can be explored further on the InvestingPro platform.
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