Recall Holdings Ltd, a document management and data protection company, has an agreement in principle to be acquired by Boston-based competitor Iron Mountain Inc., for about $2 billion, the companies announced Tuesday.
The companies said a final agreement is contingent upon conducting due diligence and negotiating final terms and conditions of a deal. Last year, Recall rejected a $1.8 billion buyout offer from Iron Mountain.
Recall's local operations are located in Peachtree Corners. In a statement, Recall President and Chief Executive Officer Doug Pertz said a buyout “is in the best interest of the company, our shareholders and our customers.”
Iron Mountain President and CEO William L. Meaney said the combined company will have a broader footprint, a stronger infrastructure and increased economies of scale to meet the document-management and data-storage needs of more customers.
Two years ago, Recall was spun off from Australia’s Brambles Ltd, a pallet, crate and container supplier. Recall, though based in Norcross, is traded on the Australian Securities Exchange. Iron Mountain is traded on the New York Stock Exchange.
Under the proposed deal, Recall shareholders would receive 0.1722 Iron Mountain shares for each Recall share they own. Shareholders also have the option of a cash payout, the total of which is capped at A$225 million.
Iron Mountain would be acquiring a company that supports 80,000 customer accounts in 24 countries. Recall, which has 300 operations centers, has offices in London; São Paulo, Brazil; Kuala Lumpur, Malaysia; and Sydney, Australia.
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