Sterling Infosystems Inc. of New York said Monday that it has purchased Acxiom Information Security Services, a background screening company from Acxiom Corp. of Little Rock.
The CEO of Sterling, which bills itself as one of the largest background screening companies in the world, called the "pivotal" for his company. Acxiom CEO Scott Howe said selling the firm will allow it to better focus on its core services.
In a news release, Acxiom said the sale price was $74 million. Acxiom purchased what would become AISS in 2002 from TransUnion, a business intelligence services provider, for $34.6 million.
"The acquisition of AISS, one of our largest competitors, is a pivotal point in Sterling’s history because it will make us the second largest background screening company in the world," William Greenblatt, who is also a comapny founder, said in a news release on Monday.
"It will furthermore allow AISS to realize its full potential by being part of a company that is solely focused on what AISS is focused on — background screening."
Howe said the companies are a natural fit for one another.
"We have completed a careful evaluation of our business portfolio and strategy," Howe said in Acxiom’s news release on the sale.
"AISS has been a good performer for Acxiom, but its divestiture is part of our long-term strategy of placing a greater emphasis on our core database and marketing services business. This will allow us to concentrate on what we do best while providing AISS with new opportunities to flourish as part of an organization solely focused on this service."
Acxiom said it would use the proceeds from the sale for several purposes:
- "A meaningful investment" into modernizing and adding features to Acxiom’s data and marketing products and services.
- An expanded share repurchase program, under which up to $50 million of stock might be repurchased.
- Small, "tuck-in acquisitions" of specific technologies or capabilities.
- Debt retirement.
Sterling services include student screening, corporate due diligence and background investigation, occupational health work, and employment-related business tax consulting. The company operates in 200 countries, including the United States. It claims more than 9,000 clients ranging from Fortune 500 firms to small- and medium-sized businesses.
Sign up for Daily E-news
