First Advantage Acquires Unit from Affiliate First American.

St. Petersburg, FL -- Two closely related companies, First Advantage Corp. and First American Corp., have reached a definitive agreement whereby First Advantage, a risk mitigation and business solutions provider, will purchase the Credit Information Group of First American.

First American and First Advantage originally announced a letter of intent for the transaction on March 22. The definitive agreements have been approved by the board of directors at both First American and First Advantage, including by a committee of the independent directors of First Advantage.

Morgan Stanley & Co. served as the financial advisor to the committee of independent directors and delivered a fairness opinion to the independent committee. Lehman Brothers served as financial advisor backing the fairness of the transaction to First American's directors.

Parker Kennedy, chairman and CEO of First American and chairman of First Advantage, said in the press release that his company is "firmly committed to maximizing value for shareholders of both First American and First Advantage.

"Between our two companies, nearly all forms of business information are available. First American will concentrate on real estate information and First Advantage will cover the other forms of business information. This is a great move for both companies as credit information is a natural fit with the other background screening services offered by First Advantage. First American customers will continue to benefit from a close partnership between our companies, and First Advantage will gain scale and product strength to continue its dynamic growth."

He said the transfer of First American's credit information unit to First Advantage creates natural synergies. After the transaction, First Advantage will have in excess of a $1 billion market cap based on share values in late May.

Under terms of the agreement, First American Corp. and its First American Real Estate Solutions joint venture will contribute their mortgage, automotive, consumer and subprime credit businesses to First Advantage in ...