Autonomy said Monday that it will acquire Iron Mountain's digital archiving, e-discovery and online backup business for $380 million.
Iron Mountain, best known for its shredding and information management services for physical documents, is exiting the digital business because it can't keep up with developing technology. Iron Mountain will retain its software escrow business and other technology services such the digital record center for images and medical images. The company stopped accepting customers for its Virtual File Store and Archive Services Platform products.
For Autonomy, the purchase brings more than 6,000 customers to the company and adds more than six petabytes of data under management.
Among the key points:
- Autonomy will support Iron Mountain's existing customers.
- Iron Mountain's Connected backup service will be offered to existing Autonomy customers.
- The deal will boost Autonomy revenue by $130 million to $140 million a year with cost savings of $40 million annual a year after the purchase closes.
- Autonomy will take a $10 million charge when the deal closes. The deal will mean "slight earnings dilution" in the first quarter after close, but be neutral to 2011 earnings. Autonomy said 2012 earnings will get a 15 percent boost in 2012.