Iron Mountain neemt ITRenew over

Data­center operator Iron Mountain heeft ITRenew overgenomen. 

Hier is het Engels­ta­lige persbericht:

Iron Mountain Incor­po­rated (NYSE: IRM), the leading infor­ma­tion mana­ge­ment company, has entered into a defi­ni­tive agreement to acquire ITRenew, a global leader in mission critical data center lifecycle mana­ge­ment solutions. Upon closing, Iron Mountain will 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 Close for a minimum enter­prise value of $925 million. Previous investor ZMC, a leading private equity firm focused on tech­no­logy, media and commu­ni­ca­tions invest­ments, will exit its position as part of this transaction.

Founded in 2000, ITRenew prin­ci­pally serves hypers­ca­lers, the fastest growing segment of the global IT Asset Dispo­si­tion market, focusing on maxi­mi­zing the lifetime value of data center servers through sustai­nable asset dispo­si­tion, recycling and remar­ke­ting solutions. With its compre­hen­sive portfolio of best-in-class 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 circu­la­rity. 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.

Following the close of the trans­ac­tion, ITRenew will form the platform for Iron Mountain’s Global IT Asset Lifecycle Mana­ge­ment business. 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.

Strategic Rationale and Benefits

• Signi­fi­cant Oppor­tu­nity for Iron Mountain to Capi­ta­lize on the Large and Growing IT Asset Dispo­si­tion Market: Mana­ge­ment estimates the IT Asset Dispo­si­tion total addres­sable market is $30 billion and growing 11 percent compounded annually over the next five years. ITRenew prin­ci­pally operates in the hypers­cale segment of the market, which is the fastest-growing segment and is fore­ca­sted to grow in the high teens compounded annually over the next five years.
• Leverages and Extends Key Iron Mountain Strengths: Iron Mountain will build on this strategic platform and acce­le­rate enter­prise growth by leve­r­a­ging its global customer base and best-in-class data security and logistics capa­bi­li­ties. In addition, ITRenew’s hypers­cale focus is highly comple­men­tary to Iron Mountain’s existing data center business.
• Advances Iron Mountain’s Global Sustai­na­bi­lity Strategy: ITRenew’s inno­va­tive circular economy models help companies achieve critical sustai­na­bi­lity benefits. Today, Iron Mountain’s Data Centers are powered by 100 percent renewable energy, and together with ITRenew, the Company sees signi­fi­cant oppor­tu­ni­ties to enhance the value of its Envi­ron­mental, Social and Gover­nance offerings.
• Finan­ci­ally Compel­ling: Iron Mountain anti­ci­pates the acqui­si­tion will be imme­di­a­tely accretive to 2022 AFFO and posi­ti­vely enhance the Company’s long-term revenue and cash flow growth. The Company has secured financing commit­ments and expects to fund the trans­ac­tion through a combi­na­tion of new debt and borrowing capacity under its current revolver with modest impact on leverage in the short term. The Company expects to de-lever quickly and exit 2022 within its target leverage range.

“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.”

Deirdre Evens, Iron Mountain Executive Vice President, Asset Lifecycle Mana­ge­ment added, “With ITRenew, we become a key player in addres­sing the global challenge of reducing the envi­ron­mental impact of IT and data center opera­tions, furthering our commit­ment to ESG.”

“We are excited to enter this agreement with Iron Mountain, as the combi­na­tion will provide us with the scale and global footprint to achieve our vision and deliver long-term growth,” said Aidin Aghamiri, Chief Executive Officer of ITRenew.