Monday, October 23, 2017

Iron Mountain buys Fortrust Data Centers for $130m, expands total capacity to 70MW

Company’s first acquisition in the data centre space increases its reach across the Western Coast of the USA.

Storage and information management services company Iron Mountain has agreed to purchase MAG Datacenters, LLC, for approximately $128m, enlarging the company’s total possible expansion to more than 70 MW.

MAG operates the data centre business of Fortrust which includes one asset in Denver, US.

The facility comprises 9 MW of operational power and 210,000 sqf of space, including 71,000 rentable sqf of colocation space.

According to the company, 75% of the capacity is currently leased to 250 customers. Fortrust’s top 25 customers represent approximately half of annualised revenue.

The Denver data centre also has space for an additional 38,000 rentable sqf of colocation flooring and an extra 7 MW of power. Iron Mountain has not disclosed when it will be expanding the facility.

The transaction is subject to customary closing conditions and anticipated to be completed prior to the end of Q3 2017.

Iron Mountain said it intends to fund the purchase with a combination of approximately $73.5m from a private placement of stock to the seller and $54.5m in cash.

Iron Mountain president and CEO William L. Meaney, said: “We continue to see opportunities to expand our business through strong organic growth, new development and acquisition.

“Together with our existing data centres and completion of the first phase of our Northern Virginia data centre campus next month, this acquisition will strengthen the foundation of a long-term growth engine and help accelerate the growth in our Adjacent Businesses.”

Steven Knudson, CEO of Fortrust, said: “We are excited by the potential this transaction with Iron Mountain represents, giving our customers access to a larger portfolio of locations and services while still receiving the highest level of customer service and operational quality FORTRUST has delivered for over 15 years.”

Overall, Iron Mountain’s portfolio has now increased to 30MW, with facilities in Boston, Northern Virginia, Kansas, Denver and Pennsylvania.

Combined, the data centres have a total expandable reach of more than 70MW, according to Mark Kidd, senior vice president and general manager, Iron Mountain Data Centers.