Iron Mountain a large information management, storage and colocation provider, has acquired 80% of the outstanding shares of circular cloud and sustainable data center infrastructure provider, ITRenew. Iron Mountain will pay approximately $725 million in cash now, with the remaining 20 percent acquired within three years of close for a minimum enterprise value of $925 million.
ITRenew, which was founded in 2000 and focuses on optimizing the lifetime value of data center servers through sustainable asset disposal, recycling, and remarketing solutions, primarily serves hyperscalers, the fastest expanding section of the worldwide IT Asset Disposition industry.
ITRenew helps enterprises to safeguard their data, optimize the value of their hardware assets, and have a beneficial influence on the environment through IT asset circularity with its comprehensive array of best-in-class decommissioning and data security services.
ITRenew had trailing twelve-month sales of more than $415 million as of September 30, 2021, with a two-year compounded annual growth rate of nearly 16 percent. As part of the sale, previous investor ZMC, a renowned private equity company focused on technology, media, and communications ventures, will divest its shareholding.
IT Asset Lifecycle Management
ITRenew will serve as the platform for Iron Mountain’s Global IT Asset Lifecycle Management business when the acquisition closes. The deployment, maintenance, and eventual decommissioning and dispose of technological assets at the end of their useful life is referred to as IT Asset Lifecycle Management. The acquisition is intended to improve the company’s capacity to deliver end-to-end services to the hyperscale, corporate data center, and corporate end-user device markets.
By using its worldwide client base and best-in-class data security and logistical capabilities, Iron Mountain anticipates to expand on this strategic foundation and drive business development. Furthermore, ITRenew’s hyperscale expertise would complement Iron Mountain’s current data center business.
Iron Mountain expects to profit from the large and growing IT asset disposition market. According to the company, the overall addressable market for IT Asset Disposition is estimated to be $30 billion, with a compound annual growth rate of 11% over the next five years, according to management. ITRenew primarily serves the hyperscale industry, which is the fastest-growing segment with annual compound growth predicted in the high teens over the next five years.
