Iron mountain, the Boston-based data storage and management company, announced Friday that it will acquire the California-based company ITRenew for nearly $ 725 million in cash. The deal is expected to be finalized in the first quarter of next year.
As part of the purchase, Iron Mountain will receive an 80 percent interest in ITRenew, which refurbishes and resells data center equipment and is based in Newark, California. Iron Mountain intends to buy the remaining 20 percent of ITRenew within three years for a minimum payment of $ 200 million, company officials said, which will give the deal a full price. of at least $ 925 million.
William Meaney, managing director of Iron Mountain, said the acquisition “marks a milestone” in Iron Mountain’s business line, which helps customers get the most from their hardware assets.
As of mid-morning, Iron Mountain’s stock was up about 1%.
Founded in 2000, ITRenew has grown to become a leading player in the recycling of data center equipment, enabling its customers to securely protect their data and hardware assets. The company’s revenue has grown about 16% over the past two years, with around $ 415 million in revenue in the past 12 months, according to Iron Mountain officials.
Once the deal is done, ITRenew will power Iron Mountain’s global IT asset lifecycle management business, which helps customers deploy, manage and decommission technology assets, officials said. business. The acquisition positions the company to capture a $ 30 billion IT asset management market share, officials said.
The deal is expected to be funded by new debt and a current line of credit. ZMC, a New York-based private equity firm that acquired ITRenew in 2017, will sell its stake as part of the transaction.
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