Iron Mountain Acquires Data Center Lifecycle Management Company ITRenew

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Iron Mountain Incorporated at agreed to acquire ITRenew, a provider of data center lifecycle management solutions, to enhance its ability to deliver end-to-end services to hyperscale customers, enterprise data centers and enterprise end users, including lifecycle management of IT assets, according to a statement issued by the company.

This is technology merger and acquisition deal number 772 that ChannelE2E has covered so far in 2021. See all tech merger and acquisition deals for 2021 and 2020 listed here.

Iron Mountain acquires ITRenew

Under the terms of the agreement, upon closing, Iron Mountain will acquire 80 percent of the outstanding shares of ITRenew on a cash, debt-free basis for approximately $ 725 million in cash, with the remaining 20 percent vested in three years after closing. for a minimum enterprise value of $ 925 million with a minimum payout of $ 200 million and the final amount subject to company performance. The minimum enterprise value implies a purchase multiple of approximately 12x based on the EBITDA for the past twelve months to September 30, 2021. Former investor ZMC will exit its position as part of the transaction, the statement said. .

Founded in 2000, ITRenew is a multinational corporation specializing in the divestiture of IT assets and lifecycle management of data center technology. ITRenew primarily serves hyperscalers and focuses on the sustainable disposal of assets, recycling and remarketing of data center technology and solutions. As of September 30, 2021, ITRenew had year-over-year revenue of over $ 415 million and a two-year compound annual growth rate of approximately 16%.

Iron Mountain was founded in 1951 and has over 225,000 customers worldwide. The company offers a range of services including digital transformation, data centers, secure record storage, information management, IT asset lifecycle management, secure destruction and storage and logistics. works of art.

After the transaction closes, 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 ultimately decommissioning and disposition of technology assets at the end of their useful life. The acquisition will allow Iron Mountain to capitalize on the large and growing IT asset divestiture market and enhance the company’s global sustainability strategy, the statement said.

Advancing asset lifecycle management and sustainability

William Meaney, CEO, Iron Mountain

Deirdre Evens, Executive Vice President, Asset Lifecycle Management, Iron Mountain

Aidin Aghamiri, CEO, ITRenew

William Meaney, CEO of Iron Mountain, commented on the news:

“This strategic transaction marks an important step in advancing Iron Mountain’s position in asset lifecycle management and accelerating our company’s growth trajectory. ITRenew complements our rapidly growing IT asset and data center lifecycle management business by providing capabilities to serve some of the world’s largest and most innovative businesses.

Deirdre Evens, Iron Mountain Executive Vice President, Asset Lifecycle Management, added:

“With ITRenew, we are becoming a key player in meeting the global challenge of reducing the environmental impact of IT operations and data centers, thereby strengthening our commitment to ESG. “

Aidin Aghamiri, CEO of ITRenew, said:

“We are delighted to enter into this agreement with Iron Mountain as the combination will provide us with the scale and global footprint necessary to achieve our vision and ensure long-term growth. “

The transaction is expected to close in the first quarter of 2022, subject to regulatory approval and other customary closing conditions.

Morgan Stanley & Co. LLC, acts as financial advisor, and Weil, Gotshal & Manges LLP acts as legal advisor to Iron Mountain.

Jefferies LLC is acting as financial advisor and Sidley Austin LLP as legal advisor to ITRenew.

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