Iron Mountain to acquire Regency Technologies

Author: Isha Jain

Iron Mountain has announced it has entered into a definitive agreement to acquire Regency Technologies, a provider of IT asset disposition (ITAD) services in the US. Building on Iron Mountain’s extensive logistics network, the combined platform will establish a market-leading distributed footprint for the remarketing and recycling of IT assets. This will result in enhanced environmental sustainability and increased value recovery at the end of the IT asset lifecycle.

Regency Technologies currently processes over 50,000 metric tons of material annually, reselling more than 2,000,000 units across eight locations spanning the US. It adheres to the environmental protocols of e-Stewards, RIOS, NAID, as well as ISO 14001 across its footprint. For more than two decades, it has led the way in innovation, technology and sustainability. Numerous Fortune 500 corporations, government agencies, defence contractors and educational institutions consider Regency to be their preferred ALM partner.

In 2019, 53.6 million metric tons of e-waste were generated and only 17% was recycled. With the volume of e-waste continuing to rise, increased IT asset disposition practices across the globe are crucial for mitigating the environmental and data security risks associated with the disposal of electronic equipment.

Transaction details

Regency has trailing four quarter revenues in excess of $100 million. The initial purchase price is $200 million, with $125 million to be paid at close and the remainder due in 2025. The acquisition also features a potential performance-based earn-out, which would be payable in 2027, if earned. The transaction is subject to customary closing conditions.

Advisors

Weil, Gotshal & Manges LLP is serving as legal counsel to Iron Mountain.

Lazard and Metronome Partners are serving as financial advisors, BakerHostetler and Sonkin Koberna are serving as legal counsel, and BMF is serving as tax advisor to Regency Technologies.