Altegrity Inc. is looking to sell its HireRight division – which provides background checks for private-sector employers – for a price of up to $1 billion, according to a report from Reuters available at http://www.reuters.com/article/2013/07/02/us-providence-altegrity-idUSBRE9610TB20130702.
Reuters reports that the potential sale of HireRight by Altegrity, which is owned by private equity firm Providence Equity Partners, comes while another of Altegrity’s units, USIS, faces a U.S. government investigation over its 2011 background check of National Security Agency leaker Edward Snowden.
Irvine, California-based HireRight is one of the largest employment screening providers with around $95 million in annual earnings before interest, tax, depreciation and amortization (EBITDA) and could be sold for approximately 10 times that amount to “help relieve financial woes for Altegrity,” Reuters reports.
Altegrity – which was bought by Providence for $1.5 billion in 2007 from Carlyle Group LP (CG.O) and Welsh, Carson, Anderson & Stowe – did not immediately respond to requests for comments on the story and representatives for Providence Equity declined to comment on the story, according to Reuters.
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