Iron Mountain - Iron Mountain to Acquire Regency Technologies

PORTSMOUTH, N.H.--(BUSINESS WIRE)-- Iron Mountain (NYSE: IRM), a global leader in information management, innovative storage, data center infrastructure, and asset lifecycle management today announced it has entered into a definitive agreement to acquire Regency Technologies, a leading provider of IT asset disposition (ITAD) services in the United States. Building on Iron Mountain’s extensive logistics network, which already provides customers with leading information security in IT Asset Lifecycle Management (ALM), the combined platform will establish a market-leading distributed footprint for the remarketing and recycling of IT assets. This will result in enhanced environmental sustainability and increased value recovery at the end of the IT asset lifecycle.

Regency Technologies currently processes over 50,000 metric tons of material annually, reselling more than 2,000,000 units across eight locations spanning the United States. Regency adheres to the environmental protocols of e-Stewards, RIOS, NAID as well as ISO 14001 across its footprint. For more than two decades, Regency has led the way in innovation, technology, and sustainability. Numerous Fortune 500 corporations, government agencies, defense contractors, and educational institutions consider Regency to be their preferred ALM partner.

In 2019, 53.6 million metric tons of e-waste were generated and only 17% was recycled. With the volume of e-waste continuing to rise, increased IT asset disposition practices across the globe are crucial for mitigating the environmental and data security risks associated with the disposal of electronic equipment.

“This strategic transaction represents a significant milestone in our efforts to strengthen Iron Mountain’s presence in the Asset Lifecycle Management sector and our sustainability offerings, and will propel our enterprise growth forward,” said Mark Kidd, EVP & Global General Manager, Asset Lifecycle Management & Data Centers. “Regency seamlessly complements our expanding ALM business, bolstering it with robust remarketing and recycling capabilities to better serve the world’s largest and most innovative companies and help them achieve their environmental and data security goals.”

“We are excited to add Regency’s extensive experience of over 20 years, during which we’ve successfully served enterprises, government entities and retailers, to Iron Mountain’s already impressive customer portfolio, which includes 95% of the Fortune 1000,” said Jim Levine, CEO of Regency Technologies. “By integrating our presence, remarketing expertise, and recycling operations into Iron Mountain’s ALM business, we’ll be uniting a broad array of capabilities, further solidifying our leadership in the market.”

Transaction Details

Regency Technologies has trailing four quarter revenues in excess of $100 million. The initial purchase price is $200 million, with $125 million to be paid at close and the remainder due in 2025, which represents an approximate 7.5x multiple of EBITDA. The acquisition also features a potential performance-based earn-out, which would be payable in 2027, if earned. The transaction is subject to customary closing conditions.

Advisors

Weil, Gotshal & Manges LLP is serving as legal counsel to Iron Mountain.

Lazard and Metronome Partners are serving as financial advisors, BakerHostetler and Sonkin Koberna are serving as legal counsel, and BMF is serving as tax advisor to Regency Technologies.

About Iron Mountain

Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management, innovative storage, data center infrastructure, and asset lifecycle management. Founded in 1951 and trusted by more than 225,000 customers worldwide, Iron Mountain serves to protect and elevate the power of our customers’ work. Through a range of services including digital transformation, data centers, secure records storage, information management, asset lifecycle management, secure destruction, and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.

To learn more about Iron Mountain, please visit: www.IronMountain.com and follow @IronMountain on X (formerly Twitter) and LinkedIn.

About Regency Technologies

Regency Technologies partners with Fortune 500 companies, government organizations, and other clients to process their end-of-use IT assets. The company uses innovative processes and equipment to maximize monetary value, extend the useful life of devices, and support the environmental sustainability goals of its clients.

Source: Iron Mountain Incorporated

« More Press Releases

Iron Mountain, Inc.
Symbol: IRM
CIK: 1020569
Exchange: NYSE
Founded: 1951 (73 years)
Type of REIT: Equity REIT
Listing Status: Public
Market Capitalization: Large-Cap
REIT Sector: Specialty, Data Centers

Compare

REITRating is REITNote's Real Estate Investment Trust industry-specific rating and ranking system. The overall score is out of ten points, with ten being the best score.

Latest Price: $91.71
High: $92.58
Low: $91.36
Open: $92.17
Previous Close: $91.78
Volume: 781,393
52-Week High: $92.73
52-Week Low: $55.10

Last updated: 2024-07-05 12:57:01 PST