The US logistics company Iron Mountain is about to acquire Australian data group Recall in a revised offer worth $2.726 billion.
The deal will create a leading global information management solutions company with substantial Australia-based shareholding.
An earlier offer at $2.2 Billion was rejected by the board of Recall.
The Recall board approved the latest offer of $8.50 per share cash, a substantial improvement on the previous $7 offer in December.
Shareholders can either take the cash, subject to a total pool of $225 million, or 0.1722 of an Iron Mountain share for each Recall share.
Iron Mountain will establish a secondary listing on the ASX to allow Australian Recall shareholders to trade Iron Mountain shares locally in the form of CHESS Depository Interests.
The deal means Recall shareholders will own up to 21% of the combined entity.
William L. Meaney, CEO of Iron Mountain, says Recall has a great business with potential to provide significant synergies.
“The savings from these synergies will allow us to further our investments in delivering innovative products and services and a superior customer experience within our highly competitive and dynamic marketplace,” he says.
Recall share are trading at $7.62, about 1.97% higher.