Iron Mountain Inc.
) appears to be on an acquisition spree. It recently acquired
Cornerstone Records Management to expand its records management
business for a cash consideration of $191 million.
Cornerstone is a privately held company which specializes in
document management, storage, document shredding and data
protection services and manages over 11 million cubic feet of
This acquisition is expected to have a limited impact on Iron
Mountain's 2013 results. However, it is expected to add around
$50 million to $55 million in revenues and $20 million in
adjusted operating income prior to depreciation and amortization
next year. The acquisition will also add small and midsized
companies to Iron Mountain's client base.
Iron Mountain has an aggressive acquisition strategy to
supplement organic growth in storage revenues. Year to date, the
company has spent almost $100.0 million on acquisitions in
countries such as Peru, Brazil and Colombia.
The company has not only gained new customers from these
acquisitions but has also been able to expand its operations in
international regions such as Greece, China, Hong Kong,
Singapore, Switzerland and Turkey.
Moreover, this strategy is helping the company to increase its
presence in emerging markets, such as Brazil and Colombia. We
expect the company to continue pursuing strategic acquisitions in
emerging markets like Brazil, Russia, China and India, which will
boost its international revenues, going forward.
On the other hand, we remained concerned about the competition
that the company faces from
Hertz Global Holdings
Pitney Bowes Inc
Guidance Software Inc
). Moreover, slower internal growth rate, and currency
fluctuations are other concerns.
Currently, Iron Mountain has a Zacks Rank #3 (Hold).
GUIDANCE SOFTWR (GUID): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
IRON MOUNTAIN (IRM): Free Stock Analysis
PITNEY BOWES IN (PBI): Free Stock Analysis
To read this article on Zacks.com click here.