The US logistics company Iron Mountain has finally won its bid for Australian data group Recall in a revised offer worth $3.4 billion.
The deal, approved by the Recall board, is a significant improvement on the last offer of $2.7 billion.
Emerging from the takeover will be a leading global information management solutions company, with three-quarters of its business in records management, and with substantial Australia-based shareholding.
Recall shareholders will get 0.1722 of an Iron Mountain common share and $US0.50 in cash. Shareholders can also opt to take $8.50 in cash for each Recall share.
Under the deal, Recall shareholders will own about 21% of Iron Mountain.
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.
Iron Mountain CEO William L. Meaney says the combined companies will become a strong competitor in the global corporate services industry.
“Our broader footprint, real estate platform and increased economies of scale will better serve our existing customer bases and address unmet storage and information management needs worldwide,” he says.
“Recall is an attractive business with a history of solid growth which will complement our sustainable growth strategy and provide increased value for Iron Mountain shareholders. This acquisition will also facilitate Iron Mountain’s long-term deleveraging objectives and contribute to long-term dividend growth.”
Recall shares last traded at $7.02.