HireRight Seeks IPO

Following Salary.com’s lead, employment-screening vendor HireRight has filed for an $86 million initial public offering.

In a filing with the Securities and Exchange Commission on Monday, HireRight said it may use a portion of the net proceeds “for acquisitions of, or investments in, businesses, products, or technologies that enhance or add new services or additional functionality, further solidify our market position, or allow us to offer complementary products, services, or technologies.”

According to analyst Jason Corsello, “Not only have they built a strong business, including robust channels in talent management and HRO, they are also good guys.”

“It will be interesting if this positioning warrants a premium similar to other publicly traded SaaS vendors (Salesforce.com withstanding),” Corsello wrote on his blog.

The Irvine, California-based company offers criminal, motor vehicle, and other public records searches, employment, education, and professional license verifications and credit checks, as well as drug and health screening services.

In 2006, the company processed approximately 4.8 million distinct records searches, verifications, checks, and screens for its customers.

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In its SEC filing, it said it served more than 1,400 customers, which included 17 of the Fortune 100 companies and 53 of the Fortune 500 companies.

In 2006, it also provided screening solutions to approximately 1,300 of its customers’ third-party suppliers and contractors through its supplier screening solutions.

Additionally, its Extended Workforce Screening Solution was named one of Human Resource Executive magazine’s 2006 Top HR Products of the Year.

Meanwhile, Salary.com has its IPO scheduled for later this week. In an amended SEC filing in January, the on-demand compensation management products company set its planned IPO at five million shares for an estimated price of $8 to $10 each.

Elaine Rigoli has nearly 15 years of experience managing content and community for various B2B and consumer websites. Elaine has written thousands of business and technology articles and has been quoted in The Wall Street Journal and eWeek, among other publications.


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