Intersections Inc. Completes Acquisition of American Background
CHANTILLY, Va.--Nov. 15, 2004--Intersections Inc. (Nasdaq:INTX) today announced that it has completed its acquisition of American Background Information Services, Inc., a Winchester, Va. - based provider of pre-employment background checks and personnel risk management services. The purchase was closed on November 12. A definitive agreement setting the terms of the deal was signed on October 14. In an $18.5 million cash deal, Intersections acquired all existing stock in American Background. In addition, Intersections paid approximately $1.4 million to retire American Background's outstanding bank debt.
American Background is a profitable and growing company with expected 2004 revenue of approximately $11 million. The company's core services include a variety of risk management tools, including criminal background checks, driving records, employment verification and reference checks, as well as drug testing and credit history checks. American Background's consultative approach allows it to develop tailored risk management solutions for its clients aimed at reducing personnel-related liabilities.
Intersections will operate American Background as a wholly-owned subsidiary and will retain the company's experienced executive management team. Chris Andrews will continue as Chief Executive Officer of American Background.
About Intersections Inc.
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements." Those forward-looking statements involve known and unknown risks and are subject to change based on various factors and uncertainties that may cause actual results to differ materially from those expressed or implied by those statements. Factors and uncertainties that may cause actual results to differ include, but are not limited to, failure to close the acquisition of American Background or realize the anticipated benefits of the acquisition and the risks disclosed in the Company's filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to revise or update any forward-looking statements.
American Background was wholly owned by Amsec Enterprises, a risk management consulting firm. Downer & Company acted as financial advisor to Amsec Enterprises on this transaction.