Irvine-based employment screening company HireRight Inc. is being bought by Virginia’s US Investigations Services LLC for $195 million, according to a regulatory filing on Tuesday.
US Investigations agreed to pay HireRight shareholders $15.60 per share, a 49%premium above HireRight’s closing price on Monday.
US Investigations, which is privately held and owned by Rhode Island’s Providence Equity Partners, provides background investigations, employment and drug screening services to the government and businesses.
The acquisition would combine HireRight with US Investigations’ commercial services division.
HireRight counted 300 workers in Orange County last year; it’s unclear what will happen to those jobs after the sale is complete.
The deal, which is expected to close by September, still needs to be approved by HireRight shareholders and get regulatory clearance.
After the acquisition, US Investigations expects to serve more than 27,000 customers.
“The combined company will have a greater reach than either company would have standing alone,” said HireRight chief executive Eric Boden.
HireRight generates about $70 million revenue and has a market capitalization of $175 million.
On Tuesday, the company’s shares closed up 45%.
The company’s stock has fluctuated due to concerns about the U.S. labor market since going public in late 2007.
