First Advantage Sells Shares of DealerTrack Holdings, Inc.
October 24, 2007
ST. PETERSBURG, Fla., -- First Advantage Corporation (Nasdaq: FADV), announced the sale of 2.875 million shares of DealerTrack Holdings, Inc. ("DealerTrack") common stock. The sale will result in a gain, before taxes, of approximately $97.7 million or 96 cents per diluted share.
"The sale of DealerTrack stock will fortify First Advantage's financial position and provides us with additional means to pursue strategic growth opportunities in our core businesses," said Anand Nallathambi, president and CEO of First Advantage.
"We provide more than 20 million credit reports annually to the automotive market through more than 40 strategic marketing partners," added Nallathambi. "We look forward to continuing the strategic business relationship established between this valued partner and our Dealer Services segment."
First Advantage will discontinue using the equity method of accounting for its remaining investment in DealerTrack, which will be accounted for on the cost method. After the sale, First Advantage's subsidiary, Credit Management Solutions, Inc., will continue to own approximately 2.5 million shares of DealerTrack common stock, or 6 percent of the outstanding shares.
Source: First Advantage Corporation