FORT LAUDERDALE, Fla., July 21, 2015 /PRNewswire/ -- Patriot National, Inc. (NYSE: PN), a leading provider of technology and outsourcing solutions, announced today that it has entered into an agreement to acquire pre-hire intelligence solutions provider Global HR Research (GHRR). The transaction is expected to close on or before August 25, 2015.
Fort Myers based GHRR, which provides pre-employment background screening, assessment and acquisition solutions will augment Patriot's broad employer service offerings, enabling a lower cost of doing business and improved front-end risk management for Patriot's over 27,000 clients. The integration of Patriot's robust distribution platform with GHRR's products and services will present significant cross-selling opportunities. The total purchase price will be $24 million in cash and $18 million in stock or approximately 6.5X 2016 adjusted EBITDA.
"Risks in the modern business environment have made pre-employment background screening nearly as essential as workers compensation insurance coverage for employers large and small," said Steven M. Mariano, Chairman & CEO of Patriot National. "Just as our Contego group provides fraud investigation after claims are reported, GHRR will assist our clients in managing risk up-front, leading to safer and more profitable workplaces."
Brandon G. Phillips, President and CEO of Global HR Research, added, "The combination of Patriot's proven model and GHRR's industry leading pre-employment screening and acquisition solutions will allow the combined organization to be a 'one-stop shop' for employers seeking to manage their risk management programs. Our team looks forward to introducing GHRR's products and services to our now much broader client base."
Serving small businesses to Fortune 500 companies across the country, Global HR Research – which has been recognized for the past five years in HRO Today Magazine's "Bakers Dozen" List of top national background screening providers – is accredited by the National Association of Professional Background Screeners (NAPBS) as recognized by the Background Screening Credentialing Council (BSCC).
About Patriot National
Patriot National is a national provider of comprehensive technology and outsourcing solutions within the property and casualty marketplace for insurance companies, employers, local governments and reinsurance captives. Patriot National provides general agency services, claims administration, technology outsourcing, software solutions, specialty underwriting, employer and policyholder services to its clients. Patriot National is headquartered in Fort Lauderdale, Florida.
Forward Looking Statements
This press release may include statements that may be deemed to be forward-looking statements. Words such as "may," "will," "should," "likely," "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "positioned," "outlook," "Guidance," and similar expressions are used to identify these forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties, and there are important factors that could cause actual results to differ materially from those indicated in these statements, including the potential that revenue, net income or adjusted EBITDA could finally be determined to be below the range discussed in this press release. For example, we may not be able to place insurance policies for our clients, our expenses may be higher than we expect, we may have difficulty integrating new acquisitions, new acquisitions may not perform as anticipated, as well as those matters contained in our filings with the Securities and Exchange Commission. Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements are not guarantees of future performance or events and that results may differ materially from statements made in or suggested by the forward-looking statements contained in this press release. Any forward-looking statement that we may make in this press release speaks only as of the date of such statement, and we undertake no obligation to update any forward-looking statement or to publicly announce the results of any revision to any of those statements to reflect future events or developments.
SOURCE Patriot National, Inc.