Two of the biggest names in background screenings are coming together following a period of slowing demand for their services. Shares of First Advantage (NASDAQ: FA) are down 7% and shares of Sterling Check (NASDAQ: STER) are up 25% after the two companies announced plans for an industry-reshaping merger.

First Advantage and Sterling Check both provide third-party screening and verification services for employers and other users. The uncertain economy and a slowdown in hiring has weighed on both businesses, leading to fourth-quarter revenue declines.

First Advantage announced today it earned $0.29 per share in the quarter on revenue of $202.6 million, a 4.7% year-over-year revenue decline and just short of Wall Street's $0.30 per share on revenue of $211 million. Sterling, meanwhile, earned $0.21 per share on revenue of $169.4 million. Wall Street had expected $0.25 per share in earnings on sales of $173 million, and the company had generated $169.9 million in sales in the same quarter a year ago.

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Source Fool.com