Sterling Check (STER) delivered earnings and revenue surprises of -20.83% and 3.94%, respectively, for the quarter ended March 2024. Do the numbers hold clues to what lies ahead for the stock?
It is a tough market for background screeners, but these two companies believe they have the answer to their problems.
Background screening services provider First Advantage will buy rival Sterling Check in a cash-and-stock deal valued at $2.2 billion, the company said on Thursday. The deal consists of about $1.2 billion in cash and 27.15 million shares of First Advantage common stock. It values each share of Sterling Check at $16.73, which represents a premium of 35% to the closing price of the company's stock on Wednesday.