Kroll Inc. to purchase Factual Data Corp. for 1.82 times revenue

Weekly Corporate Growth Report, Jun 30, 2003

The Deal; Kroll Inc. has agreed to acquire Factual Data Corporation for about $115 million in cash and stock. Kroll will pay $17.50 for each share of Factual Data - $14 in cash and $3.50 in Kroll stock. The transaction has been unanimously approved by the boards of both companies, but still requires approvals from shareholders and regulatory agencies. The deal is expected to close in the third quarter of 2003.

Discussion: Factual Data resells credit data and other information, delivering it to mortgage lenders and other clients via Web-based reports. The company also provides employment screening as well as credit and background screening for leasing agents and landlords.

Kroll Inc. provides a number of business information services, including pre-employment background screenings, drug testing, litigation support, fraud investigations, financial services, risk management, computer forensics, and data recovery. The company operates in 19 countries across the globe.

The acquisition will help Kroll expand its background screening capabilities into the financial services, real estate, and consumer lending sectors. This is in keeping with Kroll's strategy to expand its service offerings into more industry segments. Kroll has stated that it will likely make more acquisitions in the third and fourth quarters of 2003.