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Acquisitions (Tables)

3 Months Ended

Mar. 31, 2025

Summary of Consideration Paid and Amounts Recognized for Assets Acquired and Liabilities Assumed

The following table summarizes the consideration paid and the amounts recognized for the assets acquired and liabilities assumed (in thousands):

Consideration
Cash consideration		$	1,152,163
Plus: fair value of assumed Sterling equity awards to receive cash attributable to pre-combination service			15,905
Plus: repayment of Sterling's outstanding debt			535,046
Plus: fair value of First Advantage common stock issued			490,098
Plus: fair value of assumed Sterling equity awards to receive equity awards attributable to pre-combination service			4,487
Total fair value of consideration transferred		$	2,197,699
Current assets		$	227,469
Property and equipment, including software developed for internal use			273,370
Intangible assets			717,000
Deferred tax asset			58,100
Other assets			12,516
Current liabilities			(150,026	)
Deferred tax liability			(238,077	)
Other liabilities			(16,226	)
Total identifiable net assets		$	884,126
Goodwill		$	1,313,573

Fair values and useful lives of the acquired intangible assets

The fair values and useful lives of the acquired intangible assets by category were as follows (in thousands):

		Balance Sheet Location		Estimated Fair Values				Useful Life (in years)
Customer lists		Intangible assets, net		$	655,000			14 years
Software developed for internal use		Property and equipment, net			259,000			5 years
Trade names		Intangible assets, net			62,000			5 years

Summary of Business Acquisition Pro Forma Results

The pro forma results are not necessarily indicative of the results of operations that actually would have been achieved had the Sterling Acquisition been consummated as of January 1, 2023.

(in thousands, unaudited)		Three Months Ended March 31, 2024
Revenue		$	355,136
Net loss		$	(33,158	)

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)(2)
-SubTopic 10
-Topic 805
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479328/805-10-50-2

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)(3)
-SubTopic 10
-Topic 805
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479328/805-10-50-2

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X

- Definition

Tabular disclosure of the characteristics, including initial carrying value, residual amount, weighted average useful life, of finite-lived intangible assets acquired during the period by major class. A major class is composed of intangible assets that can be grouped together because they are similar, either by nature or by their use in the operations of the company.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482665/350-30-50-1

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482665/350-30-50-1

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X

- Definition

Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 805
-SubTopic 20
-Name Accounting Standards Codification
-Paragraph 1
-Section 50
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479907/805-20-50-1

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