BOSTON—Iron Mountain Inc. has announced that it has entered into a definitive agreement to acquire ITRenew, a provider of data center lifecycle management solutions.
Iron Mountain has agreed to acquire 80 percent of the outstanding shares of ITRenew on a cash- and debt-free basis for approximately $725 million in cash, with the remaining 20 percent acquired within three years of closing the deal for a minimum enterprise value of $925 million.
Iron Mountain is a major provider of storage and information management services, storing and protecting billions of assets. It also operates the Iron Mountain Entertainment Service’s temperature-controlled, ultra-secure Hollywood facility that houses a significant repository of historical assets from the history of film and TV.
Following the close of the transaction, ITRenew will form the platform for Iron Mountain’s Global IT Asset Lifecycle Management business.
Iron Mountain noted that IT Asset Lifecycle Management refers to the deployment, management, and ultimate decommissioning and disposition of technology assets at the end of their useful life. The combination significantly enhances the Company’s ability to provide end to end services to the hyperscale, corporate data center and corporate end user device segments.
In announcing the deal, Iron Mountain estimated that IT Asset Disposition market is worth about $30 billion and is expected to grow 11% compounded annually over the next five years.
Founded in 2000, ITRenew focuses on maximizing the lifetime value of data center servers through sustainable asset disposition, recycling and remarketing solutions, the companies said. With its comprehensive portfolio of decommissioning and data security services, ITRenew enables companies to securely protect their data, maximize the value of their hardware assets, and have a positive impact on the environment through IT asset recycling.
As of September 30, 2021, ITRenew had trailing twelve month revenue in excess of $415 million, and has a two year compounded annual growth rate of approximately 16 percent, the companies said.
"This strategic transaction marks an important step in advancing Iron Mountain’s position in Asset Lifecycle Management and accelerating our enterprise growth trajectory,” said William Meaney, chief executive officer of Iron Mountain. “ITRenew complements our fast-growing IT Asset Lifecycle Management and Data Center businesses bringing capabilities to serve some of the largest and most innovative companies in the world.”
