Zacks_Analysts' Blog : First Advantage Receives Buyout Offer - Analyst Blog

The offer calls for First Advantage shareholders to receive 0.5375 shares of First American common stock for each share of First Advantage common stock owned. Based upon Friday's closing prices, the deal values First Advantage at $14.04 per share, for a premium of approximately 10%.

We note that shares of First Advantage are currently trading higher than the value implied by the proposed deal.

First Advantage provides consumer and business credit information, as well as other business consulting services. First American is a provider of business information as well as specialty and title insurance.

We have maintained a negative outlook on First Advantage, and have held a Sell rating on the shares. The company provides services to sectors including home mortgage lenders and car dealerships, and provides consumer credit reporting and employment data services to a variety of customers. Given the state of the economy, we are not bullish on these groups looking forward.

Following this acquisition offer, however, our outlook on the shares is under review at this time.