Slide 1: First Advantage Corporation Announces the Acquisition of the Credit Information Group
Exhibit 99.3 First Advantage Corporation Announces the Acquisition of the CREDIT INFORMATION GROUP of The First American Corporation March 22, 2005
Slide 2: Safe Harbor
Safe Harbor Certain statements made in this presentation, including those related to accretion to First Advantage, the market capitalization of First Advantage, revenue and earnings growth of First Advantage, the closing of the transaction, expansion into new markets, ability to pursue larger acquis
Slide 3: Transaction Overview
Transaction Overview Combining The First American Corporation’s Credit Information Group (CIG) with First Advantage (FADV) Acquisition creates an industry leader with significant scale, unique combination of data ownership, aggregation, analytics and distribution Reunites two companies that once wer
Slide 4: Transaction Overview
Transaction Overview Letter of Intent signed Definitive agreement expected to be completed in the next two weeks First American and FARES to receive 26,829,268 FADV Class B shares, valued at $550 mm Conversion of $20 mm of FADV debt held by FAF into 975,610 Class B shares 2,243,902 Class B shares wi
Slide 5: Transaction Overview
Transaction Overview Tax-free to FAF and FADV Expected closing in late 2Q or early 3Q of 2005 Subject to approval by the independent committee, receipt of a fairness opinion by Morgan Stanley, majority approval by FADV Class A shareholders, and other customary closing conditions
Slide 6: Leadership
Transaction Overview Leadership Parker Kennedy, Chairman John Long, CEO Anand Nallathambi, President John Lamson, CFO Akshaya Mehta, COO
Slide 7: FAF Shareholder Benefits
FAF Shareholder Benefits Contribution creates leading business solutions and data provider Opportunity to realize synergies from accelerated product development and cross-selling Pro forma FADV better positioned to pursue significant growth Transaction expected to be earnings neutral to FAF in 2005
Slide 8: FAF Shareholder Benefits
FAF Shareholder Benefits FAF will have two distinct parts FAF: REAL ESTATE information and services FADV: BUSINESS information and services New configuration should lead to a better demonstration of value of different businesses Each company will concentrate on its own strategies and meaningful grow
Slide 9: FADV Overview
FADV Overview Employment Screening 4.5 million background searches/year 2.0 million drug tests/year Tax Credits & Incentives 2.5 million employment credit screens/yr. Employment and location based credits Resident Screening #1 provider; 5 mm apartment units served Proprietary evictions and national
Slide 10: FADV Overview
FADV Overview Clients use services for decision-making and assistance with… Hiring and employment matters Leasing and property management Insurance underwriting Contracting Fraud detection and investigations Security and other situations Serves 45,000+ enterprise clients in many markets
Slide 11: CIG Overview
CIG Overview Credit Information Group Mortgage 3.0 million transactions/month > 37% market share Largest provider to GSE portals Automotive 1.5 million transactions/month 30 of the top 35 auto lenders DealerTrack partnership Direct to Consumer Credit monitoring/fraud prevention One-stop customer ser
Slide 12: CIG Overview
CIG Overview Blue Chip clients in every vertical market served by CIG Strategic partnerships with dominant distribution networks CIG is DealerTrack’s credit services partner in building advanced credit management solutions Proprietary alternative credit program for underserved markets
Slide 13: CIG Overview
CIG Overview Provides products and services to help businesses: Search, identify and solicit prospects Assess credit risk and issue loans Predict, manage and cure delinquencies Predict, intervene and retain customers at high prepayment or flight risk Cross-sell additional services to existing custom
Slide 14: Strategic Benefits to FADV
Strategic Benefits to FADV The combined businesses represent an unparalleled platform comprising data ownership, aggregation, analytics and distribution networks. Integrates highly complementary credit and screening products Automotive credit complements transportation services Direct to consumer cr
Slide 15: Strategic Rationale
Strategic Rationale Immediately catapults FADV into one of the leading business information and services providers. New company has significant market share Top three or better in all businesses Dominant in resident screening, employment screening, mortgage credit, automotive credit, sub-prime credi
Slide 16: Strategic Rationale
Strategic Rationale Complementary Businesses Increase Diversity of Revenue Stream 2004 FADV Consumer Direct 5% Risk Mitigation 28% Enterprise Screening 67% Pro Forma FADV Credit Info 48% Enterprise Screening 35% Risk Mitigation 15% Consumer Direct 2% Note: Based on 2004 revenue
Slide 17: Financial Overview: FADV Historical
Financial Overview FADV Historical Financial Information Years Ended December 31, 2001 2002 2003 2004 Revenue $49,167,000 $100,925,000 $166,495,000 $266,537,000 Pre-Tax Income $(638,000) $4,331,000 $ 4,849,000 $18,443,000 EPS NA NA $0.14 $0.48
Slide 18: Financial Overview: CIG Historical
Financial Overview CIG Unaudited Historical Financial Information Years Ended December 31, 2001 2002 2003 2004 Revenue $201,000,000 $221,800,000 $254,000,000 $252,100,000 Pre-Tax Income $30,000,000 $39,300,000 $51,200,000 $54,600,000 Operating Margin 15% 18% 20% 22% Excludes $13.1 million pre-tax in
Slide 19: Financial Overview: FADV Restated
Financial Overview FADV Unaudited Restated Financial Information Years Ended December 31, 2003 2004 Increase Revenue $420,469,000 $518,624,000 23% Pre-Tax Income $45,540,000 $63,260,000 39% Net Income $26,413,000 $36,691,000 39% Diluted EPS $0.60 $0.80 33% Avg. Shares 43,958,562 45,791,617 Notes: Ex
Slide 20: FADV Financial Benefits
FADV Financial Benefits Strong balance sheet Additional debt capacity at FADV Pro Forma 2005 revenue of approximately $600 mm Pro Forma 2005 EBITDA per share of $2.25 - $2.35 Pro Forma 2005 EPS of $0.91 - $1.01, including $0.04 per share of acquisition costs related to this transaction Note: Include
Slide 21: FADV Shareholder Benefits
FADV Shareholder Benefits Accelerates company’s business plan and growth strategy $1 billion plus market cap $600 million in revenues Nearly $100 million in pre-tax earnings Adds highly complementary suite of products to FADV’s existing business offerings Enhances management team to carry forward FA