Providence Equity Partners Inc. has agreed to acquire USIS from Welsh, Carson, Anderson & Stowe (WCAS) and The Carlyle Group for approximately USD 1.5 billion.
Providence Equity Partners Inc. has agreed to acquire USIS from Welsh, Carson, Anderson & Stowe (WCAS) and The Carlyle Group for approximately USD 1.5 billion. USIS is a leading provider of pre-employment screening solutions, the largest provider of security investigations for the federal government, and a global supplier of cleared personnel supporting critical federal programs.
According to USIS’s Chief Executive Officer, the acquisition provides new growth opportunities for the business in its targeted end markets and specialized businesses.
‘We’re very pleased to partner with Providence,’ said Randy E. Dobbs, CEO of USIS. ‘This is a natural step forward for USIS at this time in our history. This acquisition represents an opportunity for USIS to grow our current businesses and look for potential opportunities that broaden our services into other areas of the overall screening and security markets.’
‘Since its formation in 1996, USIS has strived to offer great service to the United States Government as the leading provider of federal background investigations,’ said Julie Richardson, a Managing Director of Providence. ‘Under Randy’s leadership, USIS has strengthened its field operations and improved efficiencies in its core government businesses, as well as expanded further into the commercial arena. We look forward to partnering with Randy and his team to support the company’s growth and the expansion of USIS’s leadership in the federal and commercial background screening industries.’
The transaction is expected to close in the third quarter of 2007 subject to regulatory approvals and other customary closing conditions.
Lehman Brothers Inc. is serving as financial advisor to USIS and is providing acquisition financing for the transaction.
Providence Equity Partners is a leading global private equity firm specializing in equity investments in media, entertainment, communications and information companies around the world. The principals of Providence manage funds with approximately USD 21 billion in equity commitments and have invested in more than 100 companies operating in over 20 countries since the firm’s inception in 1989. Significant investments include Bresnan Broadband Holdings, Casema, Com Hem, Digiturk, Education Management Corporation, eircom, Freedom Communications, Idea Cellular, Kabel Deutschland, Metro-Goldwyn-Mayer, Ono, Open Solutions, PanAmSat, ProSiebenSat.1, Recoletos, TDC, Univision, VoiceStream Wireless, Warner Music Group, Western Wireless and Yankees Entertainment Sports Network. Providence is headquartered in Providence, RI ( USA) and has offices in New York and London. The firm is opening offices in Hong Kong and New Delhi.
USIS, established in 1996, helps businesses, federal agencies, and institutions protect critical assets, evaluate information, and identify and mitigate risk. The company offers a broad range of services including pre-employment and drug screening services, background investigations, business intelligence and risk management solutions, and national security training and staffing professional services. The company provides its specialized, customer-focused services to companies ranging from major retailers to small businesses as well as critical program support for federal agencies.
USIS’s three divisions include the Investigative Services Division , the largest supplier of background investigations to the U.S. Government; the Commercial Services Division, a leading provider of pre-employment and drug screening services to commercial clients nationwide; and the Professional Services Division, which provides cleared personnel supporting critical federal programs.
