Detective agency with Saddam link sold to rival for $1.6 billion

Corporate detective agency Kroll is being sold by owner Marsh & McLennan to a private equity-backed rival for US$1.13 billion ($1.6 billion).

The company rose to prominence in the 1980s digging up dirt on corporate raiders on behalf of companies fighting a hostile takeover, and is famed for helping to uncover the hidden assets of dictators including Saddam Hussein.

The deal brings Kroll under the wing of Altegrity, a security company run by former Kroll chief executive Mike Cherkasky.

Altegrity is owned by Providence Equity Partners.

"The combination with Kroll broadens our capabilities with the addition of a portfolio of industry-leading services to help clients identify and manage risk, said Cherkasky."

Jules Kroll, a New York lawyer and corporate detective, founded his namesake company in 1972, and it has expanded to become a global empire with 3000 employees working in 27 countries doing background checks, forensic accounting, data recovery and risk assessments on behalf of governments, financial firms and companies. Kroll left the firm in 2004 after selling it to Marsh for US$1.9 billion.

Altegrity has been assembled by Providence by bolting together a string of acquisitions.

The combined firm will have 11,000 employees.

- Independent