Storage and information management company Iron Mountain Incorporated (NYSE:IRM), has agreed to acquire Secure Data Solutions Colombia S.A.S. and G4S Document Delivery S.A.S., the Colombian records management and data protection business of G4S, the leading global security and outsourcing firm. This acquisition represents Iron Mountain’s entry into the Colombian market. Total consideration for the acquisition is approximately $54 million. The transaction is expected to close by the end of September and is subject to customary closing conditions.
Secure Data Solutions Colombia S.A.S. is the largest records management provider in Colombia, providing Iron Mountain with a solid platform for long-term country leadership. The transaction is Iron Mountain’s second in Latin America this year and offers the potential for future integration benefits within the company’s existing Latin American business, which includes operations in Argentina, Brazil, Chile, Mexico and Peru. With the acquisition, Iron Mountain will assume responsibility for managing Secure Data Solutions’ customer records, including approximately 2.4 million cubic feet of hardcopy documents and data protection tapes.
“This acquisition aligns with our objective to grow our presence in emerging markets that have attractive growth characteristics,” said William Meaney, president and CEO of Iron Mountain. “Colombia is the fourth largest economy in Latin America with strong GDP growth and an improving business environment. Our entry into this important market is consistent with our strategy to capture the initial wave of records outsourcing by acquiring local storage companies with strong records management platforms and deep customer relationships.”
“Our Secure Data Solutions business in Colombia is a very successful organic growth story,” said Grahame Gibson, regional CEO for G4S Americas. “The business has become the market leader as a result of strong and focused management combined with sound growth and performance over the past several years.”“Secure Data Solution’s impressive expansion and solid returns have been driven by delivering trusted and dependable service to organizations throughout Colombia,” said Marc Duale, Iron Mountain’s president of international operations. “We welcome their employees and customers and look forward to addressing their information storage and service needs.”