First Advantage Corporation Acquires CompuNet Credit Services, Inc.
|November 5, 2004|
ST. PETERSBURG, Fla.,PRNewswire-FirstCall/ -- First Advantage Corporation (Nasdaq: FADV ), a risk mitigation and business solutions provider, today announced the acquisition of CompuNet Credit Services, Inc., a supplier of business credit information to the transportation industry. CompuNet's proprietary database of transportation brokers and shippers' payment practices provides First Advantage with a unique resource for industry credit data needs.
Founded in 1984, CompuNet is the leading provider of credit information to the trucking industry. The company, located in Lake Havasu City, Ariz., developed and maintains the largest collaborative proprietary database of payment practice records on more than 60,000 transportation brokers and shippers in North America. Comprised of client-contributed accounts receivables and public records data, the database serves as the core of the company's services. Subscribing clients utilize CompuNet's services to evaluate the nonpayment (or slow payment) risk of shippers and brokers before agreeing to transport cargo on credit. The pervasive use of the database also provides CompuNet's clients with collections leverage as shippers and brokers prefer to maintain good credit standing in order to retain their ability to transport goods on credit.
CompuNet's services complement the various services currently offered by First Advantage to the transportation industry, including tax credits and incentives, permitting services, fuel tax reporting, motor vehicle records, supply chain security services, background screening and substance abuse testing.
"Of all the acquisitions that we have completed to date, CompuNet's addition creates the greatest opportunity for First Advantage to demonstrate the power of cross-selling," said John Long, president and chief executive officer of First Advantage Corporation. "We have a real opportunity to introduce not one or two of our services, but more than a half a dozen of First Advantage's proven competencies. We are very excited to add transportation business credit information to our portfolio and even more excited to do so with an innovative company like CompuNet."
"CompuNet is excited to be embarking on a new phase in our company's history," said Cindy Aldridge, president and founder of CompuNet. "Through the years, we have worked to provide our clients with enhanced products and the best service possible. Now, given the resources of First Advantage, we can offer an extensive package of products and services geared specifically to meet the unique needs of our client base."
Veronis Suhler Stevenson advised CompuNet in this transaction.
Source: First Advantage Corporation