ZMC Agrees to Sell ITRenew to Iron Mountain
NEW YORK--(BUSINESS WIRE)-- ITRenew Inc. (“ITRenew” or the “Company”), a portfolio company of ZMC (“ZMC”), announced today it has signed a definitive agreement pursuant to which Iron Mountain incorporated (NYSE: IRM) will acquire the Company. The transaction is subject to customary closing conditions.
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Founded in 2000, ITRenew has established itself as the leading IT Asset Disposition (ITAD) provider serving the global hyperscale segment, focused on maximizing the lifetime value of data center technology through sustainable asset disposition, recycling and remarketing solutions. With its comprehensive portfolio of best-in-class decommissioning and data security services, ITRenew enables its customers to securely protect their data, maximize the value of their hardware assets, and have a positive impact on the environment through IT Asset circularity. The 2017 acquisition of ITRenew by ZMC was the result of a targeted search led by ZMC principals for businesses that would benefit from the explosive growth in hyperscale data centers.
ITRenew has been a driving force in the shift to sustainable IT infrastructure, helping companies worldwide to meet aggressive decarbonization and growth targets by orchestrating the entire lifecycle of hyperscale assets, creating second lives for some of the most advanced technology on the planet. ITRenew transforms decommissioned hardware into everything from critical components to best-in-class, fully integrated edge and data center infrastructure. Annually, ITRenew securely and sustainably decommissions more than one million servers, a number that is growing rapidly.
"We are very proud of what we have built over the past several years with ZMC’s support,” said Aidin Aghamiri, Chief Executive Officer of ITRenew. “We see immense benefits and significant growth opportunities with Iron Mountain. The combination of Iron Mountain’s blue chip enterprise customers and investments in data centers will play a valuable role in fulfilling the opportunities we’ve developed at ITRenew, providing us with the scale and global footprint we need to achieve our vision and deliver long-term growth,” he added.
The Company achieved significant expansion under ZMC's ownership, including rapid growth of revenue, executing strategic acquisitions and institutionalizing operations to meet customer demand. To achieve this growth, ZMC partnered with the management team to develop core strategies that resulted in gaining a greater share of spend with existing clients, winning new clients, launching in new geographies, developing and launching new products and implementing operational and process reengineering initiatives to gain efficiencies. ZMC also invested heavily in expanding the ITRenew workforce.
"We take great satisfaction in ITRenew’s dynamic growth in recent years, driven by an outstanding management team and a talented group of employees. When we began our partnership, ITRenew was a family-owned business with a unique solution for hyperscale data center operators to extend data center technology. Today, it is a global thought leader within the circular economy addressing the entire lifecycle of hyperscale assets. We feel fortunate that we had the opportunity to work with the Company during this phase of its growth and remain excited about ITRenew’s prospects," said Andrew Vogel, ZMC’s Co-Chief Investment Officer and Managing Partner.
Jefferies is serving as financial advisor and Sidley Austin LLP is serving as legal counsel to ITRenew.
Morgan Stanley & Co. LLC, is serving as financial advisor, and Weil, Gotshal & Manges LLP is serving as legal counsel to Iron Mountain.
ZMC is a leading private equity firm comprised of experienced investors and executives who invest in and manages a diverse group of media and communications enterprises. Founded in 2001, ZMC's investment philosophy centers on operational value creation driven by targeted investment themes, deep sector expertise, and strong partnerships with industry and operating executives. ZMC approaches its investments in collaboration with management teams and has a successful track record of actively adding value to portfolio companies. ZMC is currently investing out of ZMC III, L.P., which closed on $775 million in commitments. For more information, visit www.zmclp.com.
ITRenew, the Circular Cloud leader, is a multinational corporation creating circularity models and second lives for some of the most advanced data center technology on the planet. With sustainably sourced products and services that power cloud and enterprise data centers, edge infrastructure, AI/ML, embedded and industrial systems worldwide, ITRenew is opening up billions in new financial opportunity across the ecosystem, slashing e-waste and CO2 impact, and making hyperscale hardware accessible to and affordable for all. To learn more, visit www.itrenew.com and follow ITRenew on LinkedIn and Twitter @ITRenewinc.
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) is the global leader in innovative storage and information management services, storing and protecting billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Founded in 1951 and trusted by more than 225,000 customers worldwide, Iron Mountain helps customers CLIMB HIGHER™ to transform their businesses. Through a range of services including digital transformation, data centers, secure records storage, information management, IT 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 Twitter and LinkedIn.