Data management firm Iron Mountain has agreed to sell its digital data storage division to UK based Autonomy for $380 million in cash.
The division sale will include Iron Mountain’s online back-up and recovery offerings and digital archiving and e-discovery solutions.
The company’s digital storage division was not generating enough value for shareholders due to faltering sales and increased market competition. Iron Mountain was repeatedly being advised to sell the unit for better returns to shareholders and to move to better business lines.
“This transaction is another significant step in delivering on the commitments we made in our three-year strategic plan announced in April,’’ said Richard Reese, Iron Mountain’s chief executive, The Boston Globe reports.
The sell-off happened after the company conducted its own review in to the failing business unit and eventually decided to sell it off.
Cambridge based Autonomy plans to expand its cloud based offerings with the new acquisition. The company reportedly had a cash pile of $1.1 billion, which was set aside for a strategic acquisition that would help boost its growth.
“This acquisition makes Autonomy the cloud platform of choice, processing and understanding 25 petabytes of customer information," said company CEO Mike Lynch.