The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Business Wire

Iron Mountain Continues to Advance Its Strategic Agenda by Signing Definitive Agreement to Sell Certain Digital Solutions

Monday, May 16, 2011

Iron Mountain Continues to Advance Its Strategic Agenda by Signing Definitive Agreement to Sell Certain Digital Solutions04:04 EDT Monday, May 16, 2011 BOSTON (Business Wire) -- Iron Mountain Incorporated (NYSE: IRM), the information management company, continued to advance its strategic agenda with today's announcement that it has entered into a definitive agreement with Autonomy Corporation plc (LSE: AU. or AU.L) under which Autonomy will acquire Iron Mountain's online backup & recovery, digital archiving and eDiscovery solutions for $380 million in cash. The acquisition is subject to regulatory review and customary closing conditions and is expected to close within approximately 45 to 60 days. “This transaction is another significant step in delivering on the commitments we made in our three-year strategic plan announced in April and we are very pleased with the outcome of this process,” said Richard Reese, Iron Mountain's Executive Chairman and Chief Executive Officer. “Autonomy is a global leader in infrastructure software for the enterprise assuring that our customers will be well serviced and our employees will have greater opportunities. This was the right transaction at the right time for our customers, our employees and our shareholders. As we move forward, Iron Mountain will continue to deliver technology services to solve our customers' digital information management challenges through partnerships.” Iron Mountain first entered the digital business 10 years ago as a natural extension of its core services to address a clear customer need. Recently the digital business faced a number of challenges resulting from a rapidly changing environment. In light of these factors, the Company undertook a strategic review of the digital business beginning last fall and concluded that it could not continue investing in technology development and meet its return requirements and that exploring strategic alternatives for the digital business was in the best interest of Iron Mountain's stockholders. Iron Mountain is not revisiting its full year 2011 guidance, last updated on April 28, 2011, at this time. The Company will update its guidance on its second quarter earnings conference call as appropriate. The Company will retain its software escrow business, which is currently included in its Worldwide Digital Business segment, and other technology services such as its Digital Record Centers for Images and Medical Images. J.P. Morgan Securities LLC and Morgan Stanley & Co. Incorporated are serving as lead and co-financial advisors, respectively, and Weil, Gotshal & Manges LLP and Sullivan & Worcester LLP are serving as legal advisors to Iron Mountain. About Iron Mountain Iron Mountain Incorporated (NYSE: IRM) provides information management services that help organizations lower the costs, risks and inefficiencies of managing their physical and digital data. The Company's solutions enable customers to protect and better use their information—regardless of its format, location or lifecycle stage—so they can optimize their business and ensure proper recovery, compliance and discovery. Founded in 1951, Iron Mountain manages billions of information assets, including business records, electronic files, medical data, emails and more for organizations around the world. Visit for more information. Forward Looking Statements This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws, and is subject to the safe-harbor created by such Act and laws. Forward-looking statements include statements regarding the Company's intentions and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those contemplated in the forward-looking statements. Such factors include, but are not limited to: (i) the cost to comply with current and future laws, regulations and customer demands relating to privacy issues; (ii) the impact of litigation or disputes that may arise in connection with incidents in which the Company fails to protect its customers' information;(iii) changes in the price for the Company's services relative to the cost of providing such services; (iv) changes in customer preferences and demand for the Company's services;(v) the cost or potential liabilities associated with real estate necessary for the Company's business; (vi) the performance of business partners upon whom the Company depends for technical assistance or management expertise outside the United States; (vii) changes in the political and economic environments in the countries in which the Company's international subsidiaries operate; (viii) in the various digital businesses in which the Company is engaged, the Company's ability to keep up with rapid technological changes, evolving industry expectations and changing customer requirements or competition for customers; (ix) the successful completion of our strategic alternative review process for the digital business; (x) claims that the Company's technology violates the intellectual property rights of a third party; (xi) the impact of legal restrictions or limitations under stock repurchase plans on price, volume or timing of stock repurchases; (xii) the impact of alternative, more attractive investments to dividends or stock repurchases; (xiii) the Company's ability or inability to complete acquisitions on satisfactory terms and to integrate acquired companies efficiently; (xiv) other trends in competitive or economic conditions affecting the Company's financial condition or results of operations not presently contemplated; and (xv) other risks described more fully in the Company's most recently filed Annual Report on Form 10-K under “Item 1A. Risk Factors” and other documents that the Company files with the Securities and Exchange Commission from time to time. 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. Iron Mountain IncorporatedInvestor Relations:Stephen P. Golden, 617-535-4799Vice President, Investor Relationssgolden@ironmountain.comorMedia:Dan O?Neill, 617-535-2966Director, Corporate