Sterling Expands through Acquisition of Employment Background Investigations, Inc.

Rhea-AI Summary

Sterling, a global leader in background screening and identity services, announced the acquisition of Employment Background Investigations, Inc. (EBI) to enhance its foothold in key US markets such as financial services and healthcare. Established in 1994, EBI specializes in background checks, drug testing, and compliance solutions, serving prominent clients across various sectors. The all-cash deal is projected to generate over $30 million in revenue for Sterling in 2022 and is expected to significantly boost adjusted earnings, providing synergies and improved service offerings.

Positive

• Acquisition of EBI expected to add over $30 million in revenue for 2022.
• Deal anticipated to be accretive to adjusted earnings in 2022.
• Enhanced service offerings and synergies from the merger.

Negative

• None.

NEW YORK, Dec. 01, 2021 (GLOBE NEWSWIRE) -- Sterling, a leading global provider of background screening and identity services, today announced that it has acquired Employment Background Investigations, Inc. (EBI) in a highly complementary deal that will expand Sterling’s presence in key US verticals, including financial services, healthcare, retail, manufacturing, and transportation.

Founded in 1994, EBI provides background screening, drug testing, occupational healthcare, and electronic Form I-9 solutions for today’s talent acquisition and workforce management needs.  Known for outstanding customer service and commitment to compliance, EBI has built a client base which includes blue chip logos across a diversified set of verticals in the US market.  These clients will continue to receive exceptional support as well as additional benefits from Sterling’s vertical delivery model, industry-leading global reach, and broad set of tech-enabled services.  

“All of us at EBI are very excited about this next phase for our company,” said Rick Kurland, CEO of EBI. “Sterling’s strategy and culture are a clear fit and we are looking forward to offering expanded solutions to our clients.”

“We are thrilled to welcome EBI to the Sterling family,” added Josh Peirez, Chief Executive Officer of Sterling. “In partnership with the EBI team, we look forward to building upon the strong client relationships with the added benefits of Sterling's global solutions and unrivaled client service.” 

This all-cash transaction is expected to add over $30 million in revenue in 2022. The deal is expected to be highly synergistic and be accretive to adjusted earnings in 2022.

About Sterling

Sterling — a leading provider of background and identity services — offers background and identity verification to help over 47,000 clients create people-first cultures built on a foundation of trust and safety. Sterling’s tech-enabled services help organizations across all industries establish great environments for their workers, partners, and customers. With operations around the world, Sterling conducts more than 89 million background checks annually. Visit us at sterlingcheck.com/

Contacts:

Investors
Judah Sokel
IR@sterlingcheck.com

Media
Jamie Serino
jamie.serino@sterlingcheck.com

FAQ

What is the purpose of Sterling's acquisition of EBI?

The acquisition aims to expand Sterling's presence in key US verticals and enhance service offerings.

How much revenue is expected from the EBI acquisition in 2022?

Sterling anticipates over $30 million in revenue from the acquisition in 2022.

Will the acquisition of EBI impact Sterling's earnings?

Yes, the deal is expected to be accretive to adjusted earnings in 2022.

When was the acquisition of EBI announced?

The acquisition was announced on December 01, 2021.

What services does EBI provide?

EBI offers background screening, drug testing, occupational healthcare, and compliance solutions.