First Advantage Corporation: Company Profile

Background

Overview

First Advantage Corporation is a leading global provider of background screening, identity verification, and compliance solutions. Established in 2003 and headquartered in Atlanta, Georgia, the company operates in over 200 countries and territories, serving more than 80,000 clients across various industries, including healthcare, financial services, retail, and transportation.

Mission and Vision

First Advantage's mission is to transform how organizations identify trustworthiness for employment, residential, and vendor decisions by delivering innovative, customer-centric solutions globally. The company envisions building trust and mitigating risk for organizations worldwide, enabling them to make informed decisions and maintain compliance.

Primary Area of Focus

The company's primary focus is on providing comprehensive background screening services, including criminal record checks, employment and education verifications, credit reports, drug and health screenings, and more. These services are designed to help organizations make confident hiring decisions, reduce risk, and ensure compliance with industry regulations.

Industry Significance

First Advantage holds a significant position in the background screening industry, processing millions of background checks annually. The company's global reach and extensive service offerings make it a trusted partner for organizations seeking to enhance their hiring processes and mitigate potential risks.

Key Strategic Focus

Core Objectives

• Global Expansion: Continuing to expand its global footprint to serve clients in more regions and enhance its market presence.

• Technological Innovation: Investing in advanced technologies, including artificial intelligence and automation, to improve the efficiency and accuracy of its screening processes.

• Customer-Centric Solutions: Developing and offering solutions tailored to meet the unique needs of various industries and client requirements.

Specific Areas of Specialization

• Pre-Onboarding Screening: Conducting comprehensive background checks, including criminal records, employment history, education verification, and drug testing.

• Post-Onboarding Monitoring: Providing ongoing monitoring services such as continuous criminal records monitoring, healthcare sanctions, and motor vehicle records.

• Identity Verification: Utilizing biometric fraud mitigation tools and digital identity checks to ensure the authenticity of candidates.

Key Technologies Utilized

• Artificial Intelligence (AI): Leveraging AI to automate and expedite the screening process, reducing turnaround times and enhancing accuracy.

• Mobile Platforms: Offering mobile-first solutions like Profile Advantage, enabling candidates to submit information directly via mobile devices, significantly decreasing time-consuming back-and-forth communications.

• Biometric Fraud Mitigation: Implementing biometric tools to prevent identity fraud and ensure the integrity of the screening process.

Primary Markets or Conditions Targeted

First Advantage primarily targets large and mid-market employers across various sectors, including healthcare, financial services, retail, and transportation. The company also serves the gig economy and contingent workforce, providing tailored solutions to meet the unique challenges of these markets.

Financials and Funding

Funding History

First Advantage is a privately held company, with its majority shareholder being Silver Lake, a global technology investment firm. The company has grown through a combination of organic growth and strategic acquisitions, including the acquisition of Sterling Check Corp in 2024, which expanded its market presence and service offerings.

Total Funds Raised

Specific details regarding the total funds raised by First Advantage are not publicly disclosed.

Recent Funding Rounds

In February 2024, First Advantage announced plans to acquire Sterling Check Corp in a $2.2 billion cash-and-stock deal. The acquisition was expected to deliver cost savings of at least $50 million and create a combined entity with annual revenue of around $1.5 billion.

Notable Investors

Silver Lake is the majority shareholder of First Advantage. Other investors include various private equity firms and institutional investors, though specific details are not publicly disclosed.

Intended Utilization of Capital

The capital from recent funding rounds and acquisitions is intended to:

• Expand Service Offerings: Enhance and diversify the company's suite of background screening and compliance solutions.

• Invest in Technology: Develop and implement advanced technologies, including AI and automation, to improve service efficiency and accuracy.

• Support Global Expansion: Strengthen the company's presence in existing markets and enter new regions to serve a broader client base.

Pipeline Development

Key Pipeline Candidates

As a service-oriented company, First Advantage's pipeline development focuses on:

• Service Enhancements: Developing new and improved background screening services to meet evolving client needs.

• Technological Innovations: Integrating cutting-edge technologies to enhance service delivery and client experience.

Stages of Clinical Trials or Product Development

First Advantage does not engage in clinical trials, as it is not a pharmaceutical or biotech company. Instead, the company focuses on the continuous development and enhancement of its service offerings.

Target Conditions

The company's services are designed to address various conditions related to employment and residential decisions, including:

• Criminal Backgrounds: Identifying any criminal history that may pose a risk.

• Employment History: Verifying past employment to ensure accuracy and reliability.

• Education Verification: Confirming educational qualifications to assess candidate suitability.

• Drug and Health Screening: Ensuring candidates meet health and safety standards.

Relevant Timelines for Anticipated Milestones

Specific timelines for upcoming service enhancements or technological developments are not publicly disclosed.

Technological Platform and Innovation

Proprietary Technologies

• US SEARCH DARWIN™: A proprietary software platform that uses advanced technology to access, assimilate, compile, distribute, and present data from public and private databases.

Significant Scientific Methods

• Biometric Fraud Mitigation: Utilizing biometric tools to prevent identity fraud and ensure the integrity of the screening process.

• AI-Driven Automation: Implementing artificial intelligence to automate and expedite the screening process, reducing turnaround times and enhancing accuracy.

Leadership Team

Key Executive Profiles

• Scott Staples: Chief Executive Officer (CEO) of First Advantage. He has been with the company since 2014 and has played a pivotal role in its growth and strategic direction.

• Alister Humphreys: General Manager of First Advantage's U.K. background screening business. He joined the company following the acquisition of GB Group Plc's U.K. background screening business in 2021.

Leadership Changes

In February 2024, First Advantage announced plans to acquire Sterling Check Corp in a $2.2 billion cash-and-stock deal. The acquisition was expected to close in the third quarter of 2024, with Scott Staples continuing as CEO of the combined entity.

Market and Competitor Analysis

Industry Growth and Dynamics

The background screening industry is experiencing significant growth, driven by increasing demand for comprehensive screening services and technological advancements. The global employment screening services market is projected to reach $12.62 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.5% from 2024.

Key Competitors

• Sterling Check Corp: A major competitor acquired by First Advantage in February 2024, enhancing First Advantage's market position.

• Certn: A technology-driven background screening company focusing on rapid and efficient screening processes.

• Onfido: Specializes in identity verification and background screening services, leveraging AI and machine learning technologies.

Strategic Collaborations and Partnerships

First Advantage has engaged in strategic acquisitions to strengthen its market position, including the acquisition of Sterling Check Corp in 2024. These acquisitions aim to expand service offerings, enhance technological capabilities, and increase market share.

Operational Insights

First Advantage competes on the basis of customer service, technological innovation, and comprehensive service offerings. The company's global reach and ability to integrate advanced technologies into its services provide a competitive edge in the background screening industry.