HireRight to be acquired for $1.6bn by General Atlantic and Stone Point Capital
HireRight Holdings Corporation (NYSE: HRT), a preeminent provider of global background screening services and workforce solutions, has announced a definitive agreement for its acquisition by investment funds affiliated with General Atlantic, L.P., and Stone Point Capital LLC. The transaction, which sees the Sponsors, currently holding approximately 75% of HireRight’s outstanding common stock, acquiring the remaining shares for $14.35 each in cash, values the company at an approximate total enterprise value of $1.65 billion.
This acquisition offer represents a significant premium of about 47% over HireRight’s 30-day volume-weighted average price per share as of November 17, 2023, and a 43% premium to its closing stock price on the same date. The offer underscores the Sponsors’ confidence in HireRight’s value and future potential, proposing a lucrative exit for the company’s unaffiliated stockholders.
In response to the offer, HireRight’s Board of Directors formed a Special Committee of independent directors, supported by independent legal and financial advisors, to assess this proposal among other strategic alternatives. After careful consideration, the Special Committee deemed the transaction advisable, fair, and in the best interest of HireRight and its unaffiliated stockholders, leading to a unanimous recommendation for board approval.
HireRight Holdings Corporation to be acquired by General Atlantic and Stone Point Capital for $1.65 billion
Guy Abramo, President and CEO of HireRight, expressed satisfaction with the agreement, highlighting the significant immediate cash premium it offers to HireRight’s unaffiliated stockholders.
The anticipated closure of the transaction by mid-2024 is contingent upon various customary conditions, including approval from a majority of the shares not owned by the Sponsors, regulatory approvals, and clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Centerview Partners LLC and Davis Polk & Wardwell LLP are advising the Special Committee, while Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Simpson Thacher & Bartlett LLP are providing financial and legal counsel to the Sponsors.
HireRight is a global leader in providing technology-driven workforce risk management and compliance solutions, offering a comprehensive suite of services that integrate seamlessly into customers’ human capital management systems. In 2022, HireRight screened over 24 million job applicants, employees, and contractors, processing more than 107 million screens for around 37,000 customers worldwide.