Iron Mountain to Divest Intellectual Property Management Business

Rhea-AI Summary

Iron Mountain (NYSE: IRM) has announced the sale of its Intellectual Property Management (IPM) business to NCC Group for gross proceeds of $220 million, netting approximately $165 million after taxes and fees. The divestiture aligns with Iron Mountain's strategy to focus on core strengths and invest in new growth areas, including data center development. For the year ending December 31, 2020, IPM generated revenue of $33 million and Adjusted EBITDA of $22 million. The transaction is expected to close in early June 2021, subject to NCC shareholder approval.

Positive

• The sale of IPM for $220 million can provide capital for strategic growth areas.
• Focus on core strengths and new innovative products may enhance future growth.
• IPM generated significant revenue and EBITDA, which helps in reducing operational complexity.

Negative

• Loss of $33 million in revenue and $22 million in Adjusted EBITDA from the divestiture of IPM.

Iron Mountain Incorporated (NYSE: IRM), the global leader in innovative storage and information management services, today signed an agreement to sell its Intellectual Property Management (“IPM”) business to NCC Group (“NCC”), a publicly listed software escrow and cyber security company, located in the UK. All of the assets associated with IPM will be sold to NCC for gross proceeds of $220 million, or approximately $165 million, net of taxes and fees, subject to adjustments.

The divestiture of the IPM business aligns with Iron Mountain’s strategy to focus on its core strengths and invest in innovative new products, services and solutions to better position the company for future growth.

“The transaction is consistent with our capital allocation strategy. It will represent another source of capital to fund our strategic growth areas, including our data center development pipeline,” said Barry A. Hytinen, Executive Vice President and Chief Financial Officer of Iron Mountain.

For the year ended December 31, 2020, IPM represented revenue and Adjusted EBITDA of approximately $33 million and $22 million, respectively. The transaction is expected to close in early June 2021, subject to customary closing conditions, including the approval of NCC’s shareholders.

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, 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

Forward Looking Statement

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws and is subject to the safe-harbor created by such Act. Forward-looking statements include, but are not, limited to the anticipated closing of the transaction. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors. When Iron Mountain uses words such as "believes," "expects," "anticipates," "estimates" or similar expressions, it is making forward-looking statements. Although Iron Mountain believes that its forward-looking statements are based on reasonable assumptions, Iron Mountain's expected results may not be achieved, and actual results may differ materially from its expectations. In addition, important factors that could cause actual results to differ from Iron Mountain's expectations include, among others Iron Mountain's ability to close the proposed transaction in accordance with its terms, the risk that the conditions to completing the transaction will not be satisfied on a timely basis or at all and risks that we may not through the joint venture be able to achieve the expectations for the business and value based on challenges with the operations, risks in the market or gain the ownership or control we expect. Other risks described more fully in our filings with the Securities and Exchange Commission, including under the caption "Risk Factors" in our periodic reports or incorporated therein. You should not rely upon forward-looking statements except as statements of Iron Mountain's present intentions and of its present expectations, which may or may not occur. Except as required by law, Iron Mountain undertakes no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512006114/en/

FAQ

What did Iron Mountain announce on May 12, 2021?

Iron Mountain announced the sale of its Intellectual Property Management business to NCC Group for $220 million.

What are the financial details of the IPM business sale by Iron Mountain?

The sale is expected to net Iron Mountain approximately $165 million after taxes and fees.

How much revenue did the IPM business generate in 2020?

The IPM business generated approximately $33 million in revenue for the year ended December 31, 2020.

When is the expected closing date for Iron Mountain's sale of the IPM business?

The transaction is expected to close in early June 2021, pending NCC shareholder approval.