Iron Mountain Inc. on Tuesday said it reached an agreement in
principle to buy Australian peer Recall Holdings Ltd. for about $2
billion in cash and stock, after its earlier bid for the
document-management and data-storage company was rejected as too
low.
The offer is subject to a number of conditions, including due
diligence and regulatory approvals.
Iron Mountain first unveiled an offer for Recall in December,
then valued at about $1.8 billion, Since then, Iron Mountain's bid
has benefited from the strengthening of the U.S. dollar and more
favorable tax assumptions.
Under the terms of the agreement, Recall shareholders would
receive 0.1722 of an Iron Mountain share for each Recall share, or
have the option to receive A$8.50 (US$6.74) per Recall share in
cash.
Iron Mountain's December offer was valued at A$7 a share.
The deal would generate "significant synergies and be highly
accretive," Iron Mountain Chief Executive William L. Meaney said in
a news release.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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