Iron Mountain (NYSE: IRM) has agreed to acquire information technology asset disposition services provider Regency Technologies for approximately $200 million as part of efforts to expand its IT asset remarketing and recycling capabilities.
“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,” Mark Kidd, executive vice president and general manager of asset lifecycle management and data centers at Iron Mountain, said in a statement published Thursday.
Regency Technologies has been providing IT ALM services for companies, defense contractors, government agencies and educational institutions for over two decades to help them meet their environmental sustainability and data security goals. The company resells over 2 million units and processes more than 50,000 metric tons of material on an annual basis across its eight U.S. locations.
Iron Mountain will pay $125 million upfront and the remaining $75 million in 2025 to buy Regency under the terms of the deal, which includes a potential performance-based earn-out that would be paid in 2027.
Weil, Gotshal & Manges acts as Iron Mountain’s legal counsel in the transaction.
Regency Technologies’ financial advisers are Lazard and Metronome Partners, while BMF serves as its tax adviser in the deal. BakerHostetler and Sonkin Koberna advise Regency on the deal’s legal aspect.
