Iron Mountain to acquire ITRenew

Boston-based Iron Mountain Inc. has entered into an agreement to acquire ITRenew, an information technology asset disposition (ITAD) provider based in Newark, California, from ZMC, which is a New York-based private equity firm. 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 value of $925 million.

Iron Mountain says it expects this transaction to close in the first quarter of 2022, subject to regulatory approval and other customary closing conditions. ZMC, ITRenew’s previous investor, will exit its position as part of this transaction, according to a news release from Iron Mountain.

Founded in 2000, ITRenew focuses on maximizing the lifetime value of data center servers through sustainable asset disposition, recycling and remarketing solutions. The California-based company helps companies to securely protect their data, improve the value of their hardware assets and provide IT asset circularity.

As of Sept. 30, ITRenew had a 12-month revenue in excess of $415 million as well as a two-year compounded annual growth rate of 16 percent, Iron Mountain reports.

Following the close of the transaction, ITRenew will form the platform for Iron Mountain’s Global IT Asset Lifecycle Management business. Iron Mountain says this will enhance its ability to provide services to the hyperscale, corporate data center and corporate end user device segments.

“This strategic transaction marks an important step in advancing Iron Mountain’s position in Asset Lifecycle Management and accelerating our enterprise growth trajectory,” says 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.”

“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, providing us with the scale and global footprint we need to achieve our vision and deliver long-term growth,” says Aidin Aghamiri, CEO of ITRenew.

According to a news release from ITRenew regarding the transaction, ITRenew experienced “significant expansion” under ZMC’s ownership. The company says ZMC had partnered with its management team to develop strategies that resulted in gaining a greater share of spend with existing clients, winning new clients, launching in new geographies, launching new products and adding operational reengineering initiatives to gain efficiencies.

“We take great satisfaction in ITRenew’s dynamic growth in recent years, driven by an outstanding management team and a talented group of employees,” says Andrew Vogel, ZMC’s co-chief investment officer and managing partner. “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.”

Morgan Stanley & Co. LLC served as a financial advisor to Iron Mountain, and Weil, Gotshal & Manges LLP served as the company’s legal counsel. ITRenew worked with Jeffries LLC as its financial advisor for the transaction, and Sidley Austin LLP was its legal counsel.