Business
Iron Mountain said on Tuesday it will buy Recall Holdings for $2.2 billion. The move comes after its earlier bid for the document-management and data-storage company was rejected as too low, notes MarketWatch. The offer is subject to a number of conditions, including due diligence and regulatory approvals. Iron Mountain first unveiled an offer for Recall in December, then valued at about $1.8 billion, Since then, Iron Mountain’s bid has benefited from the strengthening of the U.S. dollar and more favorable tax assumptions. Under the terms of the agreement, Recall shareholders would receive 0.1722 of an Iron Mountain share for each Recall share, or have the option to receive A$8.50 (US$6.74) per Recall share in cash.
The total cash consideration cannot exceed A$225 million ($179 million), Iron Mountain said, according to Reuters. Atlanta, Georgia-based Recall rejected an offer of A$7 per share from Boston-based Iron Mountain in December, saying the premium was too low. Iron Mountain said on Tuesday it would establish a secondary listing on the Australian Securities Exchange once the transaction is completed.
“Our proposed transaction with Recall represents a compelling value proposition that we expect will generate significant synergies and be highly accretive after year one for both companies’ shareholders,” Iron Mountain Chief Executive Officer William Meaney said in a statement carried in Bloomberg.
