Providence Equity Partners which is a private equity firm is looking into selling the Hire Right division of Alegrity Inc.
The division specialized in background checks made for private sector employers and is estimated to gather as much as $1 billion in revenues.
The potential sale comes during a tough time for Allegrity since USIS, another unit under Allegity's care is under investigation from the US government. This investigation pertains to the 2011 background checks made for the NSA (National Security Agency) leaker Edward Snowden.
USIS is the largest private provider used for federal government security and background checks used by the US government. HireRight focuses on the private sector. It provides employers background checks needed for potential employees. Other services provided by HireRight are drug and health screening for potential employees.
Bank of America Merrill Lynch is encouraging Providence to auction off its shares to cultivate more interest for potential buyers. The auction process is currently attracting private equity interest and is well on its way to the second round.
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