First American wants to buy subsidiary First Advantage in stock deal

By Lisa Kerner

Charlotte, N.C., June 29 - First American Corp. said it offered to acquire its publicly traded subsidiary, First Advantage Corp., in a deal valued at $14.04 per First Advantage share based on First American's closing stock price on Friday.

The offer would give First Advantage shareholders a fixed exchange ratio of 0.5375 of a share of First American common stock for each share of First Advantage common stock.

"Acquiring the minority interest in First Advantage will enhance our financial flexibility, reduce organizational complexity and provide greater overall operational efficiency," First American chairman and chief executive officer Parker S. Kennedy said in a company news release.

Kennedy said the transaction would also "boost the financial strength of First American" as the company prepares for the separation of its information solutions and financial services businesses.

First American, a Santa Ana, Calif., business information company, indirectly owns approximately 74% of First Advantage's common stock.

First Advantage provides risk mitigation and business solutions. The company is based in Poway, Calif.

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