Cornerstone’s venture involves document storage, shredding and data protection for small to medium-sized companies in the Northeast and Mid-Atlantic areas as well as in Houston, Southern California and Denver, Iron Mountain said Friday.
The acquisition is subject to adjustments in purchase price and is predicted to have a minimal impact on Iron Mountain’s 2013 revenue as well as next year’s $50-$55 million annualized profit.
“Acquiring Cornerstone is further example of how we use targeted acquisitions to advance our business strategy,” said William Meaney, president and CEO at Iron Mountain.
“In our mature markets like the U.S., selective M&A is one way we seek to expand our market presence, grow rental revenues from our storage business and sustain the durability of our cash flows.” Meaney added.
Cornerstone currently handles and keeps approximately 11 million cubic feet of paper documents in 36 rented facilities.
“We welcome the customers of Cornerstone and look forward to serving them,” said Harold Ebbighausen, president of Iron Mountain North America.
“For us, that means not only securing their records, but providing them insights and best practices on how they can manage information with less cost and risk,” he added.