Iron Mountain cleared to sell Australian operations

By Dylan Bushell-Embling
Tuesday, 25 October, 2016

Iron Mountain cleared to sell Australian operations

US-based storage and information management services company Iron Mountain has received ACCC approval to sell most of its legacy Australian operations for $70 million.

Iron Mountain is selling its Australian records management business to a consortium led by Housatonic Partners to satisfy a condition of its acquisition of Australian information management company Recall.

Iron Mountain completed the acquisition of Recall in May in a cash-and-shares deal valuing the latter at $3.7 billion.

But the ACCC’s decision not to oppose this acquisition was contingent on Iron Mountain agreeing to divest its existing Australian business — excluding its data management business — nationwide, and both its records and data management businesses in the Northern Territory.

The ACCC also stipulated that the sale of Iron Mountain’s Australian assets would itself require the regulator’s approval.

With the ACCC having now signed off on the divestment, Iron Mountain expects to complete the sale within 7–10 days.

The company expects to book a non-cash impairment charge for the third quarter of around US$14 million ($18.4 million) as a result of the sale.

Recall was demerged from supply chain logistics company Brambles in December 2013 and listed with a value of $1.9 billion. The company has around 300 dedicated operations centres across 24 countries in five continents and has more than 80,000 customers.

Image courtesy Open Grid Scheduler / Grid Engine under CC

Related News

IT firms must review power backup, following increased outages

According to a new report, there has been a significant increase in power outages, which have...

ATO website outage traced to HPE SAN failure

An HPE storage area network failure was the cause of a nearly two-day outage of the ATO's...

Server upgrades imminent for half of IT leaders

A Crucial survey suggests that nearly half of IT professionals plan to upgrade their server...

  • All content Copyright © 2018 Westwick-Farrow Pty Ltd