In a significant move shaking up the landscape of global background screening services, HireRight Holdings Corporation (NYSE: HRT) announced today its agreement to be acquired by investment funds associated with General Atlantic, L.P. ("General Atlantic") and Stone Point Capital LLC ("Stone Point"), collectively referred to as the "Sponsors." This acquisition, valued at approximately $1.65 billion, marks a strategic step forward for HireRight, a leading provider of HR, payroll, and workforce solutions.
The agreement stipulates that the Sponsors will purchase all outstanding shares of HireRight not already owned by them for $14.35 per share in cash, representing a substantial premium of about 47% over HireRight’s 30-day volume weighted average price per share as of November 17, 2023. This move underscores the confidence General Atlantic and Stone Point have in HireRight's potential and positions the company for further growth and innovation.
Guy Abramo, President and CEO of HireRight, expressed satisfaction with the agreement, emphasizing its benefits for all stakeholders involved. He remarked, "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."
The acquisition, expected to be finalized in mid-2024, is subject to approval by a majority of the shares not owned by the Sponsors, regulatory clearances, and customary closing conditions.
The transaction signifies a strategic alignment between HireRight and its new partners, enabling HireRight to continue delivering cutting-edge technology-driven workforce risk management and compliance solutions to its global clientele.
With HireRight's expertise in background screening services and General Atlantic's proven track record of supporting growth companies, this acquisition heralds a new chapter of innovation and expansion in the HR industry.
Centerview Partners LLC is serving as financial advisor to the Special Committee, and Davis Polk & Wardwell LLP is the Special Committee’s outside legal advisor.
Goldman Sachs & Co. LLC and RBC Capital Markets, LLC are acting as financial advisors to the Sponsors. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Simpson Thacher & Bartlett LLP are providing legal counsel to the Sponsors and Stone Point, respectively.
General Atlantic is a renowned global growth investor with a rich history of providing capital and strategic support to over 500 growth companies. With approximately $83 billion in assets under management, General Atlantic leverages its sector-specific expertise and collaborative approach to scale innovative businesses worldwide.
Stone Point is an alternative investment firm managing more than $50 billion in assets. Based in Greenwich, CT, Stone Point focuses on investments in companies within the global financial services industry and related sectors. The firm's investment strategies span private equity, credit, and financing solutions, contributing to the growth and success of its portfolio companies.
