First Advantage buys Data Diver Technologies for $125M to own more screening data
What's the deal? First Advantage (NASDAQ: FA), an Atlanta-based employment screening and identity verification company, has acquired Data Diver TechnologiesDealroom has a profile for this one. Try Dealroom → in a transaction valued at about $125 million. Data Diver runs an AI- and automation-powered platform that collects, aggregates, and delivers high-volume criminal and court records used in background checks.
What's the endgame? First Advantage wants to own more of its data pipeline rather than lease it. The deal expands automated record coverage across US jurisdictions, adds to its databases of more than one billion records, and brings in a smaller screening business serving small and midsized firms.
Why now? Data Diver was already a longtime third-party supplier to First Advantage, so buying it tightens control over data coverage and turnaround times while cutting reliance on outside providers. The move follows two years of integrating First Advantage's larger SterlingDealroom has a profile for this one. Try Dealroom → acquisition, which the company says is delivering results beyond expectations.
Data Diver's management team will stay on to maintain continuity and customer relationships.
By the numbers: First Advantage posted third-quarter revenue of $465.8 million, up 13.8% year over year, and raised full-year guidance to between $1.72 billion and $1.745 billion. It serves more than 80,000 customers, including roughly two-thirds of the Fortune 100, and runs more than 200 million screens annually.
What's the signal? The purchase is a strategic tuck-in rather than a transformational deal. It fits a pattern of First Advantage using smaller acquisitions to bring proprietary data and automation in-house as employers lean more on automated screening for hiring and compliance.
"This acquisition advances our strategy by enhancing our proprietary data capabilities, expanding automation, and creating new opportunities to expand our solutions and drive product innovation," said chief executive officer Scott Staples.
Read more: finance.yahoo.com, Business Insider
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