St. Petersburg, Fla. -- First Advantage Corporation, a risk mitigation and business solutions provider, has acquired The Alameda Company, an Alameda, Calif.-based business tax credits and incentives consulting firm. This purchase provides First Advantage's existing tax credits and incentives operation, CIC Enterprises of Indianapolis, Ind., with expanded market penetration and a physical presence to support west coast customers and sales initiatives.
The Alameda Company assists employers by identifying employment-related tax incentive programs available to them under both federal and state legislation, including Work Opportunity Tax Credits (WOTC), Welfare to Work (WtW), and location-based incentive programs. Alameda subsequently processes the time-consuming, cumbersome paperwork and monitors the progress with the appropriate government agency for the benefit of its clients. Founded in 1982, Alameda has developed a loyal customer following and is a well-established provider nationwide.
"Our growth strategy at First Advantage drives us to pursue best-in-class companies to add depth to existing business lines, while creating new avenues to introduce our other services," says John Long, President and Chief Executive Officer of First Advantage Corporation. "As a worthy competitor of the past, we are pleased to have Alameda join our tax credits and incentives unit and look forward to serving more of their clients' human resources and risk-related needs."
Earlier this month, President George Bush signed into law the middle-class tax bill (HR1308), which included retroactive WOTC and WtW provisions. As a result, clients of Alameda and CIC Enterprises will be able to claim credit on certified individuals hired between Jan. 1, 2004 and Dec. 31, 2005. In anticipation of the programs' renewal, both companies continued to screen and prepare incentives applications to minimize processing backlog for their clients.
"The Alameda management team is very excited to become part of First Advantage and to share resources with CIC Enterprises,” says Phil Ownbey, President of The Alameda Company. “We are most confident that our clients will quickly appreciate the benefits of this new relationship as we deliver enhanced services to meet their demands.”
Business tax credits and incentives services are frequently sold into the human resources department of a business. Likewise, a large percentage of First Advantage customers are also in human resources and purchase numerous services offered by the company, including employment background screening, substance abuse testing and other occupational health services. The client synergies between these First Advantage business lines create an interesting cross sell opportunity for First Advantage.