Apax Digital Fund invests in Accurate Background
The Apax Digital Fund (“ADF”) has today announced an investment in Accurate Background, a leading technology-enabled background screening provider, to support the company’s acquisition of CareerBuilder Employment Screening, the background screening solutions division of CareerBuilder.
Founded in 1997 and headquartered in Irvine, California, USA, Accurate Background helps some of the largest companies in the world improve and de-risk their hiring processes and policies. The opportunity is to combine two strong, independent companies to create a player of scale, in a market with secular tailwinds.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the investment expertise of Apax Partners through its investments in a diversified portfolio of private equity funds advised by Apax Partners as well as derived investments in debt and equity. In June 2017, AGA made a commitment of $50m to the Apax Digital Fund.
Accurate Background to acquire CareerBuilder Employment Screening, broadening reach and accelerating growth
Investment by the Apax Digital Fund to support transaction
Irvine, California – 4 February 2020 – Accurate Background, a leading provider of compliant, automated workforce screening solutions, today announced that it has signed a definitive agreement to acquire CareerBuilder Employment Screening (CBES) from CareerBuilder. The combined entity will operate under the Accurate Background brand and creates a uniquely positioned company focused on technology innovation, customer service, candidate experience, and delivery at scale. Through a strategic partnership agreement, CareerBuilder will continue to offer Accurate’s employment screening services to clients. The acquisition of CBES, which offers highly complementary background screening and drug-testing services and technology to employers in the U.S. and abroad, is expected to strengthen Accurate’s pre-and post-employment screening leadership and accelerate the company’s mission to deliver the most innovative and comprehensive screening services.
“We are excited to combine our two high-growth, innovation focused background screening businesses to create an industry leader with significant scale in the U.S. and internationally,” said Dave Dickerson, Founder and CEO of Accurate.“Our teams have great mutual respect and share the same dedication to customers and commitment to products and services that dramatically simplify the background screening process. We also look forward to partnering with Apax Digital in this strategic transaction and welcome their insights and expertise as we move forward.”
“Accurate and CBES have highly aligned corporate cultures centered on innovation and customer service,” said Tim Dowd, President and COO of Accurate. “Importantly, the combined products and services are highly complementary and allow us to extend the value we bring to enterprise, mid-market and small business customers. We expect a seamless integration of our product offerings and teams that will allow us to deliver one of the most comprehensive offering in the industry to our customers around the world.”
Irina Novoselsky, CEO of CareerBuilder, said, “I’m proud of the investments we have made in this best-inclass solution and the significant growth that CBES has experienced. The strategic partnership with Accurate aligns with our approach to both own, and partner when appropriate, to deliver Hello to Hire solutions to our clients. This allows for increased investment in our core business of talent discovery and acquisition. I look forward to what we will be able to accomplish in a large and dynamic market and ultimately the impact we will make on the success of our clients.”
Marcelo Gigliani, Managing Partner of Apax Digital, said, “An increasingly competitive labor-market, a more complex regulatory environment, and a growing focus on risk management excellence, are driving employers’ strong demand for best-in-class technology solutions for enhanced screening services. We are eager to partner with Accurate in its acquisition of CareerBuilder Employment Screening and look forward to supporting the company in accelerating its customer service advantage, cutting-edge innovation, and international expansion efforts.”
The transaction, which is subject to customary regulatory approvals, is expected to close by the first quarter of 2020. Financial terms of the transaction were not disclosed. The transaction will be supported by an investment from the Apax Digital Fund, the technology-focused growth equity fund advised by global private equity advisory firm Apax Partners. In conjunction with the investment by the Apax Digital Fund, Marcelo Gigliani and David Evans will join the Board of Directors of Accurate Background.
Barclays and Stifel served as financial advisors to Accurate and the Apax Digital Fund. Latham & Watkins, LLP and Simpson Thacher & Bartlett served as legal advisors to Accurate and the Apax Digital Fund, respectively.
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About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment scheme incorporated as a non-cellular company that listed on the London Stock Exchange on 15 June 2015. It is regulated by the Guernsey Financial Services Commission.
AGA’s objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses) including a dividend yield of 5% of Net Asset Value.
The investment policy of the Company is to make Private Equity investments in Apax Funds, and Derived Investments which are investments in equities and debt derived from the insights gained via Apax Partners’ Private Equity activities. The Company’s portfolio is expected to be allocated in approximately equal proportions between Private Equity and Derived Investments, although the investment mix will fluctuate over time due to market conditions, investment opportunities, cash flow requirements, the dividend policy and other factors. Further information regarding the Company and its publications are available on the Company’s website at www.apaxglobalalpha.com.
About Apax Partners LLP
Apax Partners is a leading global private equity advisory firm. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of c. €40 billion. Funds advised by Apax Partners invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long_term equity financing to build and strengthen world_class companies. For further information about Apax Partners, please visit www.apax.com.
Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.