Data center and storage company Iron Mountain has acquired IT Asset disposal & recycling firm ITRenew.
Iron Mountain will acquire 80 percent of ITRenew from private equity firm ZMC 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. The transaction is expected to close in the first quarter of 2022.
Founded in 2000, ITRenew provides decommissioning and asset disposal services for data centers while also reselling recovered hardware. Following the close of the transaction, ITRenew will form the platform for Iron Mountain’s Global IT Asset Lifecycle Management business.
"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, CEO 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.”
ZMC acquired a majority stake in ITRenew in 2017 for an undisclosed amount.
"We are very proud of what we have built over the past several years with ZMC’s support,” said Aidin Aghamiri, Chief Executive Officer of ITRenew. “We see immense benefits and significant growth opportunities with Iron Mountain. The combination of Iron Mountain’s blue chip enterprise customers and investments in data centers will play a valuable role in fulfilling the opportunities we’ve developed at ITRenew.”
Morgan Stanley & Co. LLC, is serving as financial advisor, and Weil, Gotshal & Manges LLP is serving as legal counsel to Iron Mountain. Jefferies LLC is serving as financial advisor, and Sidley Austin LLP is serving as legal counsel to ITRenew.
"When we began our partnership, ITRenew was a family-owned business with a unique solution for hyperscale data center operators to extend data center technology. Today, it is a global thought leader within the circular economy addressing the entire lifecycle of hyperscale assets,” added Andrew Vogel, ZMC’s Co-Chief Investment Officer and Managing Partner.
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