Atlantic International (OTCMKTS: ATLN) struck a deal to acquire staffing provider Staffing 360 Solutions (NASDAQ: STAF). Boards at both firms approved the transaction, which calls for Atlantic to purchase all outstanding shares with Staffing 360 shareholders receiving 1.202 Atlantic shares for each of theirs. Atlantic International shareholders will own 90% of the combined company once the deal is done, while Staffing 360 shareholders will own 10%.

Staffing 360 provides industrial staffing as well as professional staffing and employer-of-record services.

“The merger provides a unique opportunity to increase our business by approximately 50% to an annualized revenue run rate of approximately $620 million and allows us to become an even bigger force in the broad staffing sector,” Atlantic International CEO Jeffrey Jagid said in a press release.

The transaction is slated to close within 90 days subject to approval by Staffing 360 shareholders and customary closing conditions, including regulatory approval.

“Our objective is to build a multibillion-dollar diversified services company through both organic growth and M&A, and this transaction is consistent with the achievement of our goals,” Jagid said.

The companies said benefits of the merger include increased scale, improved cost structure and a more diversified customer base.

Atlantic International had approximately $400 million in revenue for the 12 months ended June 30. Its principal operating subsidiary is Lyneer Investments.

“This merger is a testament to the strengths of our respective brands and the accomplishments of our dedicated team members,” Staffing 360 CEO Brendan Flood said in a press release.

Flood will become president at the combined company, while Staffing 360 Chief Operating Officer Alicia Barker will become executive VP.

Staffing 360 is based in New York. The company sold its UK operations earlier this year to private equity firm IPE Ventures.

For its part, Atlantic International acquired Lyneer Staffing Solutions in a deal announced in June.