In a bid to strengthen its storage business,
) recently acquired three record management companies from
Information Storage Consolidation Company ("ISCC") namely Safe
Records Center, Archives USA and The Document Bank.
These acquisitions expand Iron Mountain's presence in Michigan
and strengthen its position in Dallas and Florida. Moreover, Iron
Mountain would gain approximately 1000 customers from the current
Iron Mountain has been pursuing an aggressive acquisition
strategy to supplement organic revenues from the storage
business. Some of Iron Mountain's recent acquisitions include
Datastore and Data Technology Services in Jan 2013 and IG2 Data
Security Inc., DATAPROS Storage and Staffing LLC, and Data Backup
Inc in late 2012.
We believe that the company will continue to pursue accretive
acquisitions in this segment. Storage is an integral part of Iron
Mountain's revenue structure and contributes nearly 57% to its
total revenue. Iron Mountain recorded a 4% increase in revenues
from storage in the first quarter.
We expect Iron Mountain to drive significant growth through
acquisitions in the fast-growing countries like Brazil, Russia,
China and India, which will boost its international revenues,
We believe that diversification and expansion of its business
will help the company to counter sluggish growth from the
domestic and European markets over the long term.
However, tepid internal growth coupled with volatile foreign
exchange rates and a decline in recycled paper prices are
expected to partially negate the company's strong product
portfolio, increasing market share and a promising international
Moreover, competition from
Hertz Global Holdings
Pitney Bowes Inc
Guidance Software Inc
) are the other headwinds.
Currently, Iron Mountain carries a Zacks Rank #3 (Hold).
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