Stericycle Inc., the medical-waste management company, agreed to buy document-destruction provider Shred-It International Inc. for $2.3 billion in cash to expand services to businesses seeking to comply with regulations.

The acquisition means Shred-It will scrap its plan to raise about C$600 million ($465 million) in an initial public offering that was to be Canada’s largest this year. The company, owned by investors including Toronto-based buyout firm Birch Hill Equity Partners, had received takeover interest earlier this year from document-management company Recall Holdings Ltd.

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