First Advantage Corp., an Atlanta-based provider of employment background screening, acquired Sterling Check Corp., a background screening provider based in Independence, Ohio, in a deal valued at approximately $2.2 billion in cash and stock, including Sterling’s outstanding debt.

The acquisition comprises $1.2 billion in cash and 27.15 million shares of First Advantage common stock.

The deal enables customers to benefit from accelerated investment in innovation and access to a broader suite of products and solutions to meet their needs, according to the company.

Plans call for Sterling’s CEO Peirez to join the First Advantage board, while First Advantage CEO Scott Staples will retain his role. First Advantage will remain headquartered in Atlanta.

“This combination unlocks efficiencies and opportunities to fuel incremental growth and invest in new technology solutions, including AI-driven automation, while further diversifying our business for greater resilience,” Staples said in a press release. “We look forward to welcoming Sterling’s talented employees to First Advantage and implementing best practices from both organizations to better address the needs of applicants and employers of all sizes and across all verticals.”

First Advantage and Sterling offer complementary technology solutions and services that enable employers across healthcare, retail and e-commerce, transportation, manufacturing, financial services and other industries to manage risk and hire the best talent.

“We are excited to be combining with First Advantage to accelerate Sterling’s strategic goals and deliver added value for our company, shareholders, clients and employees,” Peirez said in a press release. “Importantly, this transaction delivers immediate value to Sterling shareholders as well as the opportunity to participate in the compelling, long-term upside potential of a combined company that is positioned better than ever to serve the dynamic needs of our customers.”

Upon the acquisition’s completion, Sterling shareholders are expected to own approximately 16% of the combined company, with current First Advantage shareholders owning 84%.

The transaction, approved unanimously by both boards, is expected to close in the third quarter of 2024 and is subject to regulatory approvals, clearances and other customary closing conditions.

First Advantage Corp was founded in 2003.