Business services company generates greater profits.(POWAY)(Financial report)

First Advantage, a business services company that may soon be absorbed by its majority owner in a stock-for-stock deal, said July 27 that it had net income of $12.9 million on service revenue of $165 million in the second quarter. During the same period one year ago, First Advantage reported net income of $12.4 million on service revenue of $182 million.

First American, a Santa Ana title insurance company with $6.2 billion in revenue, indirectly owns 74 percent of First Advantage stock. First Advantage said June 29 that it received an unsolicited buyout offer from First American for 0.5375 shares of First American stock for every share of First Advantage stock. The offer, at $14.04 per share, put a 10 percent premium on First Advantage's share price of June 26. First Advantage trades on Nasdaq as FADV. It has 3,700 employees domestically and abroad. First American trades on the New York Stock Exchange as FAF.

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