Background Check Firm Checkr Acquires ModoHR

Checkr, a tech-firm that provides screening for companies such as Netflix, Instacart and Lyft, has acquired ModoHR Technologies Inc., a Canadian-based background check firm.

The acquisition, announced in a news release Tuesday (Feb. 8), will enhance Checkr’s offering by bringing ModoHR’s ScreeningCanada technology and expertise to North American organizations and giving Checkr clients greater access to Canadian background check data.

“The acquisition of ModoHR is a strategic step toward international expansion for us,” said Daniel Yanisse, CEO of Checkr. “I am excited to bring the ModoHR team to Checkr and take our platform leadership, candidate experience, customer-first mindset and most importantly our commitment to build a fairer future to customers around the world.”

“The combination of Checkr and ModoHR distinguishes us as an industry leader, and we are thrilled to bring our Canadian expertise to such an innovative company,” said Ken Cahoon, president and CEO of ModoHR. “This transaction allows ModoHR clients greater access to resources and integrations through a single, unified platform. Together, we can offer more technology innovation and access to background checking services throughout North America and globally.”

Checkr says the ScreeningCanada.ca platform gives customers a single, unified workflow for requesting and monitoring results, while protecting the privacy and security of information moving through the platform.

Following the acquisition, ModoHR’s Canadian clients will not see a description of their service, and all data will continue to be stored in Canada.

Read more: Checkr CEO: Bringing Background Checks To The Forefront

PYMNTS spoke to Yanisse in 2018 following the company’s $100 million funding round. He talked about how his hiring experience in Silicon Valley gave rise to Checkr, as he realized the inefficiencies marking the traditional hiring process.

“Background checks were tedious, done manually and took too much time,” he told PYMNTS.

The result was a slowdown in hiring on both sides of the equation, especially among companies with a flexible, gig economy workforce.

“There had to be a more streamlined solution to provide accurate, transparent and fast background screenings,” said Yanisse. “For an employer needing to hire quickly, waiting several weeks for a background screening in order to hire a driver for an on-demand job could lead to the demise of their company.”