Symphony Technology Group to Acquire the LexisNexis Screening Business from Reed Elsevier
Symphony to Combine First Advantage with LexisNexis Screening to Create a Global Leader in Talent Acquisition Solutions
First Advantage, a Symphony Technology Group (STG) company and a leading global provider of comprehensive talent acquisition solutions, today announced that it has entered into a definitive agreement to acquire the employment and resident screening business of LexisNexis Risk Solutions, a division of Reed Elsevier. As a result of the acquisition, First Advantage becomes a global leader in talent acquisition solutions with a focus on technology-enabled background screening solutions and services. The combined company will utilize its powerful data, analytics and technology capabilities to deliver even more value to its global customers in North America, Europe, China, India and throughout Asia, in financial services, retail, healthcare, manufacturing and other key verticals.
“The combination of these two leading companies will transform how employers select and screen their employees, dramatically improving the quality of their talent and their recruiting processes and productivity,” said Dr. Romesh Wadhwani, Chairman and CEO of Symphony Technology Group. “The customers of First Advantage and LexisNexis now have access to the industry’s broadest set of services and expertise and the best technology and solutions for acquiring and retaining the best and most skilled talent available.”
Through this acquisition, First Advantage becomes a global leader in providing tens of thousands of employers around the globe a broad range of solutions designed to improve talent acquisition efforts and reduce hiring risk. The addition of the LexisNexis’ screening business also further strengthens First Advantage’s position in key industries including financial services, transportation, healthcare and volunteer and non-profit. Moreover, as LexisNexis has a particularly strong presence in the retail sector, the acquisition enables First Advantage to broaden its position in the rapidly growing retail industry.
“By bringing together each team’s strengths and experience in these two organizations, First Advantage is able to help employers in a wide range of market sectors implement high-level background screening processes that ensure they find the right people who can make a positive impact on their companies,” said Jack Freker, CEO of First Advantage. “The combination of First Advantage and the LexisNexis’ screening business positions us as the most comprehensive and technologically advanced source for talent acquisition services in the world.”
Additionally, as LexisNexis is a leading provider of tenant screening services for large property management companies, First Advantage plans to further diversify its service offering to meet the growing demand for effective screening solutions for multifamily housing.
“After reviewing our business needs and strategic goals, we found that that there was a greater opportunity to accelerate the growth of the LexisNexis screening portfolio with First Advantage,” said Mark Kelsey, CEO, LexisNexis Risk Solutions. “As First Advantage is focused on talent acquisition solutions, the company fully understands the importance of background screening to organizational success and
can take the screening business to the next level.”
BofA Merrill Lynch acted as financial advisor to First Advantage on the transaction and BofA Merrill Lynch and Tennenbaum Capital Partners, LLC, including its affiliate TCP Capital Corp., provided the financing.
The acquisition is expected to close in early March 2013, subject to customary closing conditions.