HireRight Announces Completion of Acquisition by General Atlantic and Stone Point Capital
HireRight Holdings , a global leader in background screening services, announced the completion of its acquisition by investment funds affiliated with General Atlantic and Stone Point Capital. The all-cash merger transaction values HireRight at approximately $1.7 billion, with shareholders receiving $14.35 per share. The transaction was approved during a Special Meeting of Stockholders on June 21, 2024. As a result, HireRight’s common stock has ceased trading on the New York Stock Exchange.
- HireRight acquired for $1.7 billion in an all-cash transaction.
- Shareholders received $14.35 per share, a significant return.
- Strategic backing by prominent investment funds, General Atlantic and Stone Point Capital.
- HireRight's common stock has ceased trading and is delisted from the NYSE.
Insights
This acquisition represents a significant financial event for HireRight Holdings Corporation. The purchase price of
The cessation of HireRight's stock trading and delisting from the New York Stock Exchange marks a transition from a public to a private entity. This shift can have implications for transparency, as private companies are not subject to the same reporting requirements as public ones. However, it might also allow HireRight to focus on long-term strategic goals without the pressure of quarterly earnings reports.
From an investor's perspective, the deal offers a definitive exit strategy at a predetermined premium, which is typically viewed positively. However, there could be concerns regarding the future strategic direction under the new ownership, especially if the investors were keen on the company's long-term public market potential.
This acquisition involves intricate legal arrangements, particularly with the advisory roles played by renowned law firms like Davis Polk & Wardwell LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP. The fact that there was a special committee of independent and disinterested directors overseeing the transaction suggests a high level of scrutiny and a commitment to fairness in the deal's execution.
One notable legal aspect is the conversion of outstanding shares into cash and the handling of statutory appraisal rights. These rights allow dissenting shareholders to seek a judicial determination of the fair value of their shares, which could potentially lead to additional legal proceedings.
The delisting of HireRight from the NYSE also involves regulatory compliance and filings with the Securities and Exchange Commission (SEC), ensuring that all procedural aspects are correctly followed. This highlights the importance of meticulous legal oversight in such significant transactions.
Pursuant to the merger, the Sponsors acquired the Company, and all of the outstanding shares of the Company’s common stock (other than shares of the Company’s common stock that were already owned by the Sponsors and those in respect of which holders have validly exercised their statutory rights of appraisal) were converted into the right to receive
Centerview Partners LLC served as financial advisor to the committee of independent and disinterested directors established by the board of directors of HireRight (the “Special Committee”) and Davis Polk & Wardwell LLP served as the Special Committee’s outside legal advisor. Goldman Sachs & Co. LLC and RBC Capital Markets, LLC served as financial advisors to the Sponsors. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to the Sponsors and Simpson Thacher & Bartlett LLP served as legal counsel to Stone Point.
About HireRight
HireRight is a leading global provider of technology-driven workforce risk management and compliance solutions. We provide comprehensive background screening, verification, identification, monitoring, and drug and health screening services for approximately 37,000 customers across the globe. We offer our services via a unified global software and data platform that tightly integrates into our customers’ human capital management systems enabling highly effective and efficient workflows for workforce hiring, onboarding, and monitoring. In 2023, we screened over 26 million job applicants, employees and contractors for our customers and processed over 95 million screens. For more information, visit www.HireRight.com.
About General Atlantic
General Atlantic is a leading global growth investor with more than four decades of experience providing capital and strategic support for over 520 growth companies throughout its history. Established in 1980 to partner with visionary entrepreneurs and deliver lasting impact, the firm combines a collaborative global approach, sector-specific expertise, a long-term investment horizon, and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to scale innovative businesses around the world. General Atlantic has approximately
About Stone Point
Stone Point is an alternative investment firm based in
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HireRight Investors
Investor.Relations@HireRight.com
HireRight Media:
Media.Relations@HireRight.com
Or
Jim Golden / Tali Epstein
Collected Strategies
HRT-CS@collectedstrategies.com
General Atlantic:
Emily Japlon / Sara Widmann
media@generalatlantic.com
Stone Point:
Mary Manin
mmanin@stonepoint.com
Source: HireRight Holdings Corporation
FAQ
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