Ft. Lauderdale, FL – Patriot National, Inc. (NYSE: PN), a leading provider of technology and outsourcing solutions, announced today that it has entered into an agreement to acquire pre-hire intelligence solutions provider Global HR Research (GHRR). The transaction is expected to close on or before August 25, 2015.
Fort Myers based GHRR, which provides pre-employment background screening, assessment and acquisition solutions will augment Patriot’s broad employer service offerings, enabling a lower cost of doing business and improved front-end risk management for Patriot’s over 27,000 clients. The integration of Patriot’s robust distribution platform with GHRR’s products and services will present significant cross-selling opportunities. The total purchase price will be $24 million in cash and $18 million in stock or approximately 6.5X 2016 adjusted EBITDA.
“Risks in the modern business environment have made pre-employment background screening nearly as essential as workers compensation insurance coverage for employers large and small,” said Steven M. Mariano, Chairman & CEO of Patriot National. “Just as our Contego group provides fraud investigation after claims are reported, GHRR will assist our clients in managing risk up-front, leading to safer and more profitable workplaces.”
Brandon G. Phillips, President and CEO of Global HR Research, added, “The combination of Patriot’s proven model and GHRR’s industry leading pre-employment screening and acquisition solutions will allow the combined organization to be a ‘one-stop shop’ for employers seeking to manage their risk management programs. Our team looks forward to introducing GHRR’s products and services to our now much broader client base.”
Serving small businesses to Fortune 500 companies across the country, Global HR Research – which has been recognized for the past five years in HRO Today Magazine’s “Bakers Dozen” List of top national background screening providers – is accredited by the National Association of Professional Background Screeners (NAPBS) as recognized by the Background Screening Credentialing Council (BSCC).
Source: Patriot National