Background screening provider Checkr agreed to buy Inflection’s Goodhire, another screening firm that uses automation and advanced data engineering to help small businesses in their hiring.
The acquisition, the company’s largest to date, is “a critical part of Checkr’s expansion strategy in its fastest growing small-to-medium sized (SMB) business segment,” the company said. According to The Wall Street Journal, the deal was worth about $400 million.
Checkr CEO Daniel Yanisse described the acquisition as the coming together of two of the most innovative companies in the background check industry. Their teams have much in common, he said, including similar cultural values and “a focus on building delightful experiences for customers.”
Experience and the Talent War
According to Checkr, businesses of all sizes now depend on digital tools and a strong candidate experience to win the war for talent. The company described a strong experience as being similar to “the kind delivered by innovative gig companies like Uber and Doordash.”
In February, Checkr acquired ModoHR Technologies Inc., a Canadian-based background check firm. At the time, Yanisse called the acquisition “a strategic step toward international expansion.” The acquisition was to give Checkr customers greater access to Canadian background data, the company said.
Earlier, the Checkr raised $250 million in a Series E round that valued the company at $4.6 billion. The round was led by Durable Capital, alongside new investors Fidelity Management & Research Company and Franklin Templeton. To date, Checkr has raised $550 million.
Once the acquisition’s done, Checkr will have around 1,300 employees, the Journal said. As the firm looks ahead, it plans to expand its international presence as well as its products and services, including in areas that affect employee onboarding, said Linda Shaffer, the company’s chief operations officer.
By Mark Feffer
Mark Feffer is executive editor of RecruitingDaily and the HCM Technology Report. He’s written for TechTarget, HR Magazine, SHRM, Dice Insights, TLNT.com and TalentCulture, as well as Dow Jones, Bloomberg and Staffing Industry Analysts. He likes schnauzers, sailing and Kentucky-distilled beverages.
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