HireRight Acquired by Investors General Atlantic and Stone Point Capital
February 21, 2024 – HireRight, a global provider of on-demand employment screening solutions and workforce solutions, has entered into a definitive agreement to be acquired by investment funds affiliated with General Atlantic, L.P. and Stone Point Capital LLC. The two investors are currently the beneficial owners of approximately 75 percent of the HireRight’s outstanding shares of common stock. Under the terms of the agreement, General Atlantic and Stone Point Capital will acquire all of the outstanding shares they do not already own for $14.35 per share in cash, which implies a total enterprise value of approximately $1.65 billion.
The purchase price represents a premium of approximately 47 percent over HireRight’s 30-day volume weighted average price per share as of November 17, 2023, the last trading day prior to when General Atlantic and Stone Point Capital indicated that they had agreed to work together regarding a potential strategic transaction involving the company, and an approximate 43 percent premium to the HireRight’s closing stock price on the same date. The transaction is expected to close in mid-2024, subject to approval by stockholders of a majority of the shares not owned by General Atlantic and Stone Point Capital, receipt of regulatory approvals, including receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary closing conditions.
“We are pleased to have reached this agreement with General Atlantic and Stone Point, which delivers a significant and immediate cash premium to HireRight’s unaffiliated stockholders,” said Guy Abramo, president and CEO of HireRight.
As previously announced, HireRight’s board of directors formed a special committee, comprised solely of independent directors and advised by its own independent legal and financial advisors, to evaluate the proposal from General Atlantic and Stone Point Capital as well as other alternative proposals or other strategic alternatives. The special committee determined that this transaction is advisable, fair to and in the best interests of HireRight and its stockholders that are not affiliated with General Atlantic and Stone Point Capital. The special committee unanimously recommended that the board approve the transaction, and acting upon the recommendation of the special committee, the board approved the transaction.
HireRight provides background screening, verification, identification, monitoring, and drug and health screening services for approximately 38,000 customers globally. In 2022, the company screened over 24 million job applicants, employees and contractors for our customers and processed over 107 million screens.
Related: PE Firm Trivest Sells Workforce Solutions Provider PeopleShare
General Atlantic is a global growth investor with more than four decades of experience providing capital and strategic support for over 500 growth companies throughout its history. Established in 1980 to partner with visionary entrepreneurs, the firm combines a collaborative global approach, sector specific expertise, a long-term investment horizon, and an understanding of growth drivers to partner with entrepreneurs and management teams. General Atlantic has approximately $83 billion in assets under management inclusive of all products as of December 31, 2023, and more than 280 investment professionals based in New York, Amsterdam, Beijing, Hong Kong, Jakarta, London, Mexico City, Miami, Mumbai, Munich, San Francisco, São Paulo, Shanghai, Singapore, Stamford and Tel Aviv.
Stone Point is an alternative investment firm based in Greenwich, CT, with more than $50 billion of assets under management. The firm targets investments in companies in the global financial services industry and related sectors. Stone Point invests in alternative asset classes, including private equity through its flagship Trident Funds and credit through commingled funds and separately managed accounts.
Recent Launch
HireRight recently launched its new global identity verification solution, Global ID. The service includes the ability to verify a candidate’s identity in addition to their identity document through Global ID’s optional digital Liveness and Biometric Face Match feature. This allows the identity verification process to be conducted entirely remotely by the candidate, without them needing to present their ID in person to their prospective employer.
“With many businesses continuing to hire remote workers in locations where their company has no physical presence, in-person ID verification can be time consuming and inconvenient for their candidates,” said Jim Daxner, global head of product at HireRight. “HireRight’s Global ID digital identity document verification workflow with optional digital Liveness and Biometric Face Match feature streamlines the ID verification process, helping organizations to validate their candidates’ identities quickly and efficiently around the world.
Related: Hunt Scanlon Media Launches M&A Advisory Service for Recruiters
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Executive Editor; Lily Fauver, Senior Editor – Hunt Scanlon Media
