Sterling Check, which provides tech-enabled background screening and identity verification services, announced terms for its IPO on Monday.
The New York, NY-based company plans to raise $300 million by offering 14.3 million shares (67% secondary) at a price range of $20 to $22. At the midpoint of the proposed range, Sterling Check would command a fully diluted market value of $2.1 billion.
Sterling Check offers comprehensive hiring and risk management solutions including identity verification, criminal background screening, credential verification, and drug and health screening, as well as processing of employee documentation required for onboarding and ongoing risk monitoring. The company completed over 75 million searches for over 40,000 clients, including over 50% of the Fortune 100 and over 45% of the Fortune 500.
Sterling Check was founded in 2003 and booked $545 million in revenue for the 12 months ended June 30, 2021. It plans to list on the Nasdaq under the symbol STER. Goldman Sachs, J.P. Morgan, Morgan Stanley, Baird, William Blair, KeyBanc Capital Markets, Nomura Securities, and Stifel are the joint bookrunners on the deal. It is expected to price during the week of September 20, 2021.
