Iron Mountain Incorporated, an information management and storage provider, is set to acquire IT asset disposition service provider Regency Technologies.
The initial purchase price is $200 million, with a portion deferred and potential for an earn-out based on performance, according to the company.
This is technology M&A deal number 302 that ChannelE2E and MSSP Alert have covered so far in 2023. See more than 2,000 technology M&A deals for 2023, 2022, 2021, and 2020 listed here.
Iron Mountain, founded in 1951, is based in Boston, Massachusetts. The company has 21,035 employees listed on LinkedIn. Iron Mountain’s areas of expertise include information management, innovative storage, data center infrastructure, and asset lifecycle management.
Regency Technologies, founded in 1998, is based in Stow, Ohio. The company has 212 employees listed on LinkedIn. Regency Technologies’s areas of expertise include IT asset disposition (ITAD) services and environmental sustainability practices.
A Strategic Acquisition: Executive Insight
Iron Mountain aims to leverage Regency Technologies' annual processing of over 50,000 metric tons of material and the resale of more than 2 million units to enhance its IT asset lifecycle services.
Mark Kidd, EVP & Global General Manager, Asset Lifecycle Management & Data Centers at Iron Mountain, commented:
“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."
Jim Levine, CEO, Regency Technologies, said:
“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.”
Financial Aspects of the Deal
Regency Technologies boasts trailing four-quarter revenues over $100 million. The initial purchase price stands at $200 million, with $125 million to be paid at closing and the remainder due in 2025, indicative of a 7.5x multiple of EBITDA.
A potential performance-based earn-out is also part of the agreement, payable in 2027 if certain targets are met.
Legal counsel to Iron Mountain is provided by Weil, Gotshal & Manges LLP. Lazard and Metronome Partners, BakerHostetler and Sonkin Koberna served as legal counsel to Regency, and BMF as tax advisor.
