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Iron Mountain (IRM) to Buy ITRenew & Boost Platform Strength
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Iron Mountain Incorporated (IRM - Free Report) recently inked an agreement to acquire ITRenew. With the transaction, which is expected to close in the first quarter of 2022, the previous investor ZMC, a private equity firm, will exit its position. Iron Mountain expects the deal to be immediately accretive to 2022 adjusted funds from operations (FFO).
Upon closure of the transaction, Iron Mountain will acquire 80% of the outstanding shares of ITRenew on a cash- and debt-free basis for roughly $725 million ofcash. The other 20% will be acquired within three years of the closing for a minimum enterprise value of $925 million.
ITRenew, which gained reputation in mission critical data center lifecycle management solutions, was founded in 2000. Through sustainable asset disposition, recycling and remarketing solutions, it serves hyperscalers, the fastest growing segment of the global IT Asset Disposition market. As of September end, ITRenew had trailing 12-month revenues in excess of $415 million and has a two-year CAGR of nearly 16%. Hence, the acquisition seems a strategic fit for Iron Mountain.
In addition, ITRenew has a comprehensive portfolio of best-in-class decommissioning and data security services. This will highly complement Iron Mountain’s existing data center business. Moreover, IRM will leverage ITRenew’s solid IT asset circularity, global customer base, and best-in-class data security and logistics capabilities.
ITRenew will form the platform for Iron Mountain’s Global IT Asset Lifecycle Management business. Both will enhance IRM’s ability to provide end-to-end services to the hyperscale, corporate data center and corporate end user device segments.
Some stocks worth considering from the REIT sector are OUTFRONT Media (OUT - Free Report) , Cedar Realty Trust and CubeSmart (CUBE - Free Report) .
The Zacks Consensus Estimate for OUTFRONT Media’s 2021 FFO per share has been raised 13.8% over the past two months. OUT’s 2021 FFO per share is expected to increase 45.71% from the year-ago quarter’s reported figure.
OUTFRONT Media flaunts a Zacks Rank of 1 at present. Shares of OUT have rallied 5.9% in the past six months.
The Zacks Consensus Estimate for Cedar Realty’s current-year FFO per share has been raised 2.6% to $2.36 in the past two months. Over the last four quarters, CDR’s FFO per share surpassed the consensus mark twice and missed the same in the other two, the average surprise being 6.4%.
Currently, CDR sports a Zacks Rank of #2 (Buy). Shares of Cedar Realty have appreciated 52.3% in the past six months.
CubeSmart carries a Zacks Rank 2 at present. Over the last four quarters, CUBE’s FFO per share surpassed the consensus mark on all occasions, the average surprise being 7.10%.
The Zacks Consensus Estimate for CubeSmart’s 2021 FFO per share has been revised 2.4 upward in the past month to $2.10. Shares of CUBE have inched up 16.2% in the past six months.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Iron Mountain (IRM) to Buy ITRenew & Boost Platform Strength
Iron Mountain Incorporated (IRM - Free Report) recently inked an agreement to acquire ITRenew. With the transaction, which is expected to close in the first quarter of 2022, the previous investor ZMC, a private equity firm, will exit its position. Iron Mountain expects the deal to be immediately accretive to 2022 adjusted funds from operations (FFO).
Upon closure of the transaction, Iron Mountain will acquire 80% of the outstanding shares of ITRenew on a cash- and debt-free basis for roughly $725 million ofcash. The other 20% will be acquired within three years of the closing for a minimum enterprise value of $925 million.
ITRenew, which gained reputation in mission critical data center lifecycle management solutions, was founded in 2000. Through sustainable asset disposition, recycling and remarketing solutions, it serves hyperscalers, the fastest growing segment of the global IT Asset Disposition market. As of September end, ITRenew had trailing 12-month revenues in excess of $415 million and has a two-year CAGR of nearly 16%. Hence, the acquisition seems a strategic fit for Iron Mountain.
In addition, ITRenew has a comprehensive portfolio of best-in-class decommissioning and data security services. This will highly complement Iron Mountain’s existing data center business. Moreover, IRM will leverage ITRenew’s solid IT asset circularity, global customer base, and best-in-class data security and logistics capabilities.
ITRenew will form the platform for Iron Mountain’s Global IT Asset Lifecycle Management business. Both will enhance IRM’s ability to provide end-to-end services to the hyperscale, corporate data center and corporate end user device segments.
In the past three months, shares of this currently Zacks Rank #3 (Hold) playerhave appreciated 6.5%, outperforming the industry's 4.1% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some stocks worth considering from the REIT sector are OUTFRONT Media (OUT - Free Report) , Cedar Realty Trust and CubeSmart (CUBE - Free Report) .
The Zacks Consensus Estimate for OUTFRONT Media’s 2021 FFO per share has been raised 13.8% over the past two months. OUT’s 2021 FFO per share is expected to increase 45.71% from the year-ago quarter’s reported figure.
OUTFRONT Media flaunts a Zacks Rank of 1 at present. Shares of OUT have rallied 5.9% in the past six months.
The Zacks Consensus Estimate for Cedar Realty’s current-year FFO per share has been raised 2.6% to $2.36 in the past two months. Over the last four quarters, CDR’s FFO per share surpassed the consensus mark twice and missed the same in the other two, the average surprise being 6.4%.
Currently, CDR sports a Zacks Rank of #2 (Buy). Shares of Cedar Realty have appreciated 52.3% in the past six months.
CubeSmart carries a Zacks Rank 2 at present. Over the last four quarters, CUBE’s FFO per share surpassed the consensus mark on all occasions, the average surprise being 7.10%.
The Zacks Consensus Estimate for CubeSmart’s 2021 FFO per share has been revised 2.4 upward in the past month to $2.10. Shares of CUBE have inched up 16.2% in the past six months.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.