HireRight to merge with DAC provider USIS

Under terms of the agreement, USIS will pay HireRight stockholders $15.60 per share in cash.

The Trucker News Services

6/18/2008

FALLS CHURCH, Va. and IRVINE, Calif. — Drive-A-Check (DAC) services and employment screening company US Investigations Services LLC (USIS) and HireRight Inc., which provides on-demand employment background and drug screening solutions, have signed a definitive agreement to merge. The transaction is valued at approximately $195 million, the companies reported.

Under terms of the agreement, USIS will pay HireRight stockholders $15.60 per share in cash, which represents a 54 percent premium over HireRight's closing share price of $10.12 on June 6, and a 65 percent premium over the weighted average trading price of the company's shares for the past three months, according to the news release announcing the deal. Upon completion of the merger, HireRight will be combined with the USIS Commercial Services Division.

The strategic combination of the two companies is expected to provide customers with a comprehensive and integrated range of solutions for managing and mitigating employment-related business risk. The combined company will serve over 27,000 customers, ranging from small businesses to global enterprises.

The transaction is subject to several conditions including HireRight stockholder approval and regulatory approval, and is expected to close in the third quarter of this year. Prior to the anticipated closing, the two companies will continue to operate independently.