ClearStar Buys Background Screening Firm SingleSource For USD4 Million

LONDON (Alliance News) - ClearStar Inc Wednesday said it has acquired Florida-based background ...

Alliance News 17 December, 2014 | 9:24AM
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LONDON (Alliance News) - ClearStar Inc Wednesday said it has acquired Florida-based background screening company SingleSource Services Corp for up to USD4 million in cash.

ClearStar, a background-check technology and service provider, said the acquisition is being funded with its own resources. It said up to USD4 million in cash is being paid in two tranches: the first USD3.2 million already paid, and the remaining USD0.8 million in January 2016 depending on whether the SingleSource business meets revenue targets.

The company said the acquisition is in line with its plans to grow its direct sales. SingleSource provides background screening services directly to its customer base, which consists primarily of organisations and retail franchisees. It provides roughly 750,000 background checks per year. In 2013 it generated revenue of USD2.9 million and a net profit of USD0.4 million.

"The combined business - utilising ClearStar's innovative and state-of-the-art technology platform and growing sales team - will have a wider retail offering reach and will be well-positioned to target these opportunities," the company said.

ClearStar said it expects synergies from the combined business to come through in the full year 2015.

The company's stock was untraded Wednesday morning at 55.00 pence.

By Rowena Harris-Doughty;; @rharrisdoughty

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