Silver Lake Acquires First Advantage to Expand Investment Reach in Healthcare Sector

VCBeat (WeChat ID: vcbeat) learned from foreign media reports that on November 25, 2019, local time, Silver Lake announced it had signed a definitive agreement with Symphony Technology Group (STG), the parent company of First Advantage, to acquire First Advantage. The executive team of First Advantage will remain in place and become significant shareholders of the company.

Financial details of the acquisition have not been disclosed. Stifel and J.P. Morgan served as financial advisors to Silver Lake and First Advantage, respectively. Simpson Thacher & Bartlett LLP and Paul Hastings LLP acted as legal counsel to Silver Lake and First Advantage, respectively.

In 2010, STG acquired First Advantage for $265 million. STG is a strategic private equity investment firm whose mission is to invest in leading software and services companies. In addition to capital support, STG provides expertise to its portfolio companies, helping them create greater value for their customers. By continuously refining its corporate structure, STG aims to attract top-tier talent and thereby achieve strong operational performance.

First Advantage is headquartered in Atlanta, Georgia. The company’s services include background checks and drug testing for healthcare professionals. First Advantage is committed to helping clients recruit top talent in the shortest possible time. In the area of drug testing, First Advantage enables clients to quickly hire qualified medical experts through its background screening services. With more than 4,300 employees across 27 regions worldwide, First Advantage serves clients in over 200 countries and territories.

Silver Lake is a globally leading technology investment firm, with over $43 billion in assets under management and approximately 100 professional investment professionals. Silver Lake’s portfolio generates more than $230 billion in annual revenue.

Joe Osnoss, Chairman of Silver Lake, stated, “As healthcare companies seek talent, we look for top-tier partners like First Advantage, and we look forward to collaborating with First Advantage.”

Through this acquisition, Silver Lake will leverage First Advantage’s background check data on pharmaceutical testing to invest in companies with a pharmaceutical background, thereby expanding into new investment sectors for Silver Lake.

Scott Staples, CEO of First Advantage, stated, “STG has been an excellent partner over the past eight years, helping us improve company operations, launch new technologies, and expand our customer base. Silver Lake has provided us with capital and global reach, and I believe First Advantage’s future development will be even more promising.”

Marc Bala, Chairman of STG, added, “It is an honor to partner with First Advantage. Scott Staples and the company’s outstanding management team will lay the foundation for establishing First Advantage as an industry leader. Through our collaboration with Silver Lake, First Advantage’s influence will continue to grow.”

(Compiled by Zhao Siyun)