Providence Co. Buys Labat-Anderson

US Investigations Services, Inc., a Falls Church, Va.-based government security investigation services business backed by Providence Equity Partners, acquired Labat-Anderson, a government litigation support business. Terms of the transaction were not announced.

Press release

US Investigations Services, Inc. (USIS), the largest commercial provider of security investigation services to the federal government, a leading provider of pre-employment screening solutions, and a top provider of information services to the insurance industry, announced today the close of the financial transaction and acquisition of Labat-Anderson, Incorporated, a professional services firm serving government agencies in the areas of litigation support and information systems and services. Terms of the transaction were not announced.

“The Labat-Anderson business and its team of professionals adds to the solutions we provide our government customers and creates additional momentum behind our corporate strategic growth initiatives in the government markets we serve,” said Mike Cherkasky, Chief Executive Officer of USIS. “This is another significant step forward for our growth initiatives in the government sector of our business, adding another suite of solutions that we can deliver to the markets we serve.”

Labat-Anderson, with its more than 700 employees, will operate as a stand-alone division in USIS’ Government Solutions Group (GSG), joining the Investigative Services Division and the National Security Division. With its headquarters in Falls Church, Va., USIS GSG already has more than 6,500 employees that support business operations in all 50 states, U.S. territories, and overseas.

USIS and its controlling stockholder, Providence Equity Partners, are receiving legal advice from Debevoise & Plimpton LLP.

“We are looking forward to having the Labat-Anderson team onboard,” said Bill Mixon, president and CEO of USIS’ Government Solutions Group. “Labat-Anderson’s specialized approach to the markets it services fits the solutions approach we use with our government customers. We believe the investments we will make in this business will not only well serve Labat-Anderson’s current government customers, but will help us broaden the range of services we can deliver to our existing government customers. This acquisition marks an important step forward in USIS GSG’s growth strategy.”

According to Walter Malinowski, this business combination also fits the needs of Labat-Anderson and will be a catalyst for its strategic growth. “With this partnership, USIS will invest in our existing capabilities and we will be able to better serve our government customers. USIS provides us with the resources, scale, and functional support needed to enhance our service and solution offerings while maintaining the excellent service levels that our government customers have come to expect.”

“We are confident that the combination of these two great companies will increase the product and service options available to our government customers and they should expect the same superior service to which they are accustomed,” said Mixon. “Labat-Anderson’s great government customer base and leadership team were two reasons that we were interested in this business and saw potential for additional investment and overall growth our core government business.”

Established in 1996, USIS (www.usis.com) has more than 7,400 employees that support business operations in all 50 states, U.S. territories, and overseas. The first privatization of a government program into a private sector business, USIS is the largest commercial provider of background investigations to the federal government, a leading supplier of pre-employment screening solutions to commercial businesses, and one of the largest providers of data services to the insurance industry. USIS is headquartered in Falls Church, Va.

This press release contains “forward-looking” statements that involve risks and uncertainties. Forward-looking statements identify prospective information. Important factors could cause actual results to differ, possibly materially, from those stated in the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements speak only as of the date the statements are made. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws.