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First Advantage Corporation (NASDAQ: FA) is a leading global provider of employment background screening, identity, and verification solutions. The company leverages proprietary technology to deliver innovative services that help businesses manage risk, hire top talent, and ensure safer environments for employees, contractors, tenants, and drivers. Its offerings include pre-onboarding screening, post-onboarding monitoring, and a range of adjacent products tailored to meet the needs of global enterprises, mid-sized companies, and small businesses.
- Pre-Onboarding Screening - Provides criminal background checks, drug/health screening, education and work verifications, and Social Security number verifications to support hiring decisions.
- Post-Onboarding and Monitoring - Offers continuous monitoring of employees and contractors to ensure compliance and mitigate risks.
- Adjacent Products - Includes fleet/driver compliance, executive screening, data analytics, social media monitoring, and hiring tax incentives to address additional workforce and operational needs.
- Americas Segment - Delivers background check and compliance services across the workforce lifecycle in the United States, Canada, and Latin America.
- International Segment - Provides similar services as the Americas segment, tailored for Europe, India, and Asia-Pacific markets.
| Name | Position | External Roles | Short Bio | Start Date |
|---|---|---|---|---|
Scott Staples ExecutiveBoard | Chief Executive Officer (CEO) | None | CEO since April 2017, previously co-founded Mindtree Ltd., and held roles at Cambridge Technology Partners, Gemini Consulting, and Prudential. Holds a B.A. from the University of Delaware and an MBA from Fairleigh Dickinson University. | April 2017 |
Bret T. Jardine Executive | EVP, General Counsel, and Secretary | None | Joined FA in August 2004, became EVP, General Counsel, and Secretary in January 2011. Holds a B.A. in Political Science from the University of Florida and a J.D. from Stetson University College of Law. | January 2011 |
Joelle M. Smith Executive | President | None | Joined FA in July 2017, previously EVP of Resident and Investigative Research, Chief Experience Officer, and President of Data, Technology, and Experience. Holds a B.S. from East Stroudsburg University of Pennsylvania. | July 2017 |
Steven Marks Executive | Chief Financial Officer (CFO) | None | CFO since November 8, 2024, previously Chief Accounting Officer and SVP of Accounting and Controller. Holds a B.S. and Master of Accounting from the University of Florida and is a licensed CPA in Georgia. | November 2024 |
John Rudella Board | Director | Director at Silver Lake; Board member at Entrata, EverCommerce, and The Station Foundation | Director since January 2020, private equity investor with Silver Lake since 2014. Holds a B.S. from the United States Military Academy and an MBA from Harvard Business School. | January 2020 |
Joseph Osnoss Board | Chairman of the Board | Managing Partner at Silver Lake; Board member at Carta, Cegid, Clubessential Holdings, EverCommerce, Global Blue, Global Payments, LightBox, Relativity, and Zuora | Chairman since January 2020, extensive private equity experience, and serves on multiple boards. Holds a B.A. in Applied Mathematics and Economics from Harvard University. | January 2020 |
Judith Sim Board | Director | Director at Fortinet Inc. | Director since June 2021, former Chief Marketing Officer at Oracle Corporation (1991-2020). Holds a B.S. in Dietetics from the University of California at Davis. | June 2021 |
Susan R. Bell Board | Director | Director at Rollins, Inc., RPC, Inc., and Marine Products Corporation | Director since June 2021, retired from Ernst & Young LLP after a 36-year career. Holds a B.P.A. from Mississippi State University and is a CPA in Georgia and Tennessee. | June 2021 |
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Given the complexities of integrating multiple platforms from the Sterling acquisition, how do you plan to manage potential disruptions to customer service and prevent customer churn during this process?
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With Sterling experiencing attrition among higher-margin customers that impacted margins, what specific strategies are you implementing to address this issue and prevent further margin erosion?
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Base revenues came in lower than expected in the third quarter due to macroeconomic headwinds; what measures are you taking to improve base growth in the coming quarters, and how confident are you in these initiatives?
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Can you elaborate on the potential revenue synergies from the Sterling acquisition, specifically regarding upsell and cross-sell opportunities, and how you plan to achieve these without significant integration-related distractions?
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How are you prioritizing capital allocation between debt paydown, integration costs, and investments in innovation, and what is your expected timeline for reducing net leverage to your target range?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Sterling Check Corp. | 2024 | Sterling Check Corp. was acquired by First Advantage for approximately $2.2 billion in a cash-and-stock deal (with 71–72% of shares receiving cash and 28–29% stock) that also included the assumption of outstanding debt, expected to generate $50–70 million in run-rate synergies and boost capabilities in AI-driven automation and digital identification technologies. |
Infinite ID | 2023 | Infinite ID was acquired for $41.0 million to expand the portfolio of digital identity and biometrics solutions in the US; despite contributing $8.4 million in revenue during the nine months ended September 30, 2024, the acquisition was not material to the overall financial position. |
Form I-9 Compliance | 2022 | The acquisition of Form I-9 Compliance for approximately $19.8 million in cash expanded the product suite with I-9 and employment eligibility solutions, with asset allocations including current assets, property and equipment, and customer lists, and resulted in $9.116 million in goodwill (which is tax-deductible). |
Recent developments and announcements about FA.
Earnings
New Earnings (Q4 2024)
·Feb 27, 2025, 11:19 PMView full earnings summary →FA raises synergy targets to $60–$70M, up from prior estimates, driven by rapid Sterling integration. Pipeline and new wins hint at H2 growth, but base revenues remain negative for a 3rd year and net leverage is 4.4x—keep an eye on margin pressures into 2025.