Wikipedia

HireRight

(Redirected from Powerchex)

HireRight Holdings Corporation is a global family of background screening companies based in Nashville, Tennessee. The company became public via an initial public offering in 2021 with a listing on the New York Stock Exchange.[3][4] In 2024, private equity firms General Atlantic and Stone Point Capital agreed to acquire the company for $1.65 billion.[5][6] The transaction closed on June 28, 2024.[7]

HireRight Holdings Corporation
Company typePrivate
NYSE: HRT
IndustryPre-employment screening
Founded1995; 29 years ago (1995)[1]
HeadquartersNashville, Tennessee, U.S.
Key people
Guy Abramo
ServicesBackground check
RevenueIncrease US$722 million (2023)[2]
Owners
Number of employees
3,190 (2023)[2]
Websitehireright.com

Acquisitions and mergers

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Powerchex

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On June 23, 2010, HireRight announced that it had acquired Powerchex, a UK-based pre-employment screening company specialising in the financial services sector in the City of London.[8] Powerchex was a full member of the UK chapter of the National Association of Professional Background Screeners or NAPBS,[9] and was started by Alexandra Kelly in 2005 who is the former managing director and owner of the company.

In October 2010, Powerchex was rebranded as HireRight.[10]

Both Powerchex and Kroll Background Screening (below) are now fully owned subsidiaries of HireRight.

Kroll

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On August 3, 2010, HireRight then-parent company Altegrity Risk International announced it had completed the acquisition of Kroll Inc. from Marsh & McLennan Companies in an all-cash transaction valued at US$1.13 billion. In October 2010, Kroll Background Worldwide was rebranded as HireRight.[10]

On March 13, 2018, it was reported that Duff & Phelps Corp. would buy Kroll, Inc. (which did not include background screening portion of the former Kroll business that had been rebranded with HireRight brands).[11] On June 4, 2018, the transaction was completed.[12][13]

General Information Services

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On Friday, May 25, 2018, HireRight and General Information Services (GIS) announced their intent and agreement to a merger.[14] The companies announced the closing of the merger on July 12, 2018.[15] The resulting combined group is the largest provider of background screening services in the United States. Following the merger, HireRight rebranded, with both HireRight and GIS using the new branding.[16]

J-Screen and PeopleCheck

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On October 12, 2019, HireRight announced the acquisition of J-Screen in Japan and PeopleCheck in Australia.[17]

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HireRight was the subject of a number of class-action and Fair Credit Reporting Act (FCRA) lawsuits.[18][19] In 2011 the company paid $28 million to plaintiffs who accused HireRight of failing to provide copies of reports to job applicants and failing to resolve disputes.[18] And on August 8, 2012, the US Department of Justice announced HireRight settled charges of violating the FCRA for $2.6M.[18][20]

Companies that use background check services must follow FCRA procedures or face class-action liability with millions of dollars in exposure.[21] According to a Wall Street Journal investigation into hiring practices in the trucking industry, class-action lawsuits were brought against trucking companies over how they use HireRight.[18][22] HireRight customer U.S. Xpress settled in 2013 for $2.75M, and Swift in 2014 for $4.4M over their failure to disclose hiring practices.[23][24][25][26]

See also

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References

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  1. ^ "Fact Sheet". Retrieved 11 May 2019.
  2. ^ a b "2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. March 12, 2024.
  3. ^ Linnane, Caira (October 29, 2021). "HireRight IPO prices at $19 a share, below proposed price range of $21 to $24". MarketWatch.
  4. ^ "General Atlantic-backed HireRight files for U.S. IPO". Reuters. October 6, 2021.
  5. ^ "Stone Point, General Atlantic raise offer to buy HireRight to $1.65 bln deal". Reuters. February 16, 2024.
  6. ^ Dorbian, Iris (February 16, 2024). "General Atlantic and Stone Point to take background screening firm HireRight private". PE Hub.
  7. ^ HireRight Announces Completion of Acquisition by General Atlantic and Stone Point Capital
  8. ^ "Third of applicants tell lies to get a job". ERT Weekly. September 1, 2005.
  9. ^ Powerchex Joins the National Association of professional background Screeners [dead link‍]
  10. ^ a b "Kroll Background Worldwide And Powerchex Unite Under HireRight Brand". HireRight. Retrieved 11 October 2019.
  11. ^ Banerji, Gunjan (March 13, 2018). "Duff & Phelps to Buy Corporate-Investigations Firm Kroll". The Wall Street Journal. The New York Times, New York City, United States. Retrieved March 17, 2018.
  12. ^ "Duff & Phelps Announces New Business Unit After Completing Kroll Acquisition".
  13. ^ "Kroll's History". Kroll. Retrieved 11 October 2019.
  14. ^ "HireRight and GIS to Merge". HireRight. Retrieved 11 October 2019.
  15. ^ "HireRight and GIS Ownership Complete Merger". HireRight. Retrieved 11 October 2019.
  16. ^ "New HireRight, New Look". HireRight. Retrieved 11 October 2019.
  17. ^ "HireRight Strengthens Global Offering with Two Key Acquisitions in Japan and Australia". HireRight. Retrieved 11 October 2019.
  18. ^ a b c d Chao, Loretta (19 October 2016). "Driver-Screening Firms Draw Scrutiny". Wall Street Journal. Retrieved 10 May 2019.
  19. ^ "Litigation: Wirt v. Altegrity, Inc. & HireRight, Inc". Legal Action Center. Archived from the original on 2019-05-11. Retrieved 11 May 2019.
  20. ^ Office of Public Affairs (8 August 2012). "Employment Screening Services Provider Settles Charges of Violating Fair Credit Reporting Act". www.justice.gov. Department of Justice. Retrieved 11 May 2019.
  21. ^ Holland, Ron; Batten, Jonathan (20 October 2017). "FCRA 101: How to Avoid Risky Background Checks". SHRM. Retrieved 11 May 2019.
  22. ^ "Job applicants claim inaccurate background check report prevent them from finding a job | New York Consumer Law Blog". Law Office of Adam G. Singer. Retrieved 11 May 2019.
  23. ^ Kell-Holland, Clarissa. "U.S. Xpress settles for $2.75 million in lawsuit over background checks". Land Line Magazine. Archived from the original on 2019-05-11. Retrieved 11 May 2019.
  24. ^ Barradas, Samuel (11 April 2013). "Illegal Background Checks Cost U.S. Xpress $2.75 Million". TruckersReport.com. Retrieved 11 May 2019.
  25. ^ Jaillet, James. "Swift makes $4.4 million settlement with 160,000 driver applicants over background checks". Overdrive. Retrieved 27 May 2020.
  26. ^ Miller, Arnall Golden Gregory LLP-Montserrat C. "Swift Transportation Company, background checks and the FCRA | Lexology". Lexology. Retrieved 11 May 2019.
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