Research Desk Line-up: Automatic Data Processing Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 31, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Iron Mountain Inc. (NYSE: IRM), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=IRM. The storage and information management services Company announced on July 28, 2017 to acquire Mag Datacenters LLC, operator of Denver private data center business, FORTRUST, for approximately $128 million. FORTRUST is a leading provider of multi-tenant data center space in the Colorado/Mountain region. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Discover more of our free reports coverage from other companies within the Business Software & Services industry. Pro-TD has currently selected Automatic Data Processing, Inc. (NASDAQ: ADP) for due-diligence and potential coverage as the Company announced on July 27, 2017, its financial results for Q4 FY17 and FY17, and also provided its fiscal 2018 outlook. Tune into our site to register for a free membership, and be among the early birds that get our report on Automatic Data Processing when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on IRM; also brushing on ADP. Go directly to your stock of interest and access today's free coverage at:

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Terms of the Transaction

  • The transaction, which is subject to customary closing conditions, is expected to close prior to the end of Q3 2017.
  • Iron Mountain is planning to fund the acquisition with a combination of approximately $73.5 million from a private placement of stock to the seller and $54.5 million in cash. The stock will be unregistered and subject to restrictions on resale under Rule 144 of the Securities Act.
  • Stabilized return in the mid teens following build-out and lease-up of the expansion capacity is projected.
  • The Company expects earnings per share dilution of $0.01 to $0.02 in 2017 and for the acquisition to be accretive in 2019 following integration.

Benefits of the Transaction

  • Expansion Potential within FORTRUST's Existing Facility: Following the acquisition, Iron Mountain will get an expansion potential within FORTRUST's existing facility of approximately 38,000 rentable square feet of colocation space that will support another 7 MW of high-density capacity. As of June 30, 2017, FORTRUST's data center operations comprised a state-of-the-art facility totaling 210,000 square feet of space, including 71,000 rentable square feet of colocation space. The existing space provides about 9 MW of power capacity, 75% of which is leased to a diversified base of 250 customers.

  • Capacity Increment to more than 30 MW: Mark Kidd, Senior Vice President and General Manager of Iron Mountain Data Centers stated that with this acquisition, the Company will expand its network to better serve target customers for whom Iron Mountain's reputation for enhanced security, customer service and compliance are important factors in data center selection. This acquisition, together with Phase-I of the Company's northern Virginia campus will bring total capacity to more than 30 MW with the ability to expand to more than 70 MW across its data center properties.
  • Access to Larger Portfolio of Locations: Steven Knudson, Chief Executive Officer of FORTRUST stated that the transaction gives customers access to a larger portfolio of locations and services while still receiving the highest level of customer service and operational quality FORTRUST has delivered for over 15 years.
  • Accelerate Growth in Adjacent Businesses: Iron Mountain President and Chief Executive Officer, William L. Meaney, said that the Company continues to see opportunities to expand its business through strong organic growth, new development, and acquisition. Together with the existing data centers and completion of the first phase of Northern Virginia data center campus next month, this acquisition will strengthen the foundation of a long-term growth engine and help accelerate the growth in Iron Mountain's adjacent businesses.

About Iron Mountain Inc.

Founded in 1951, Iron Mountain is the global leader for storage and information management services, boasting a real estate network of more than 85 million square feet across more than 1,400 facilities in 52 countries. Iron Mountain's solutions portfolio includes records management, data management, document management, data centers, art storage and logistics, and secure shredding to help organizations to lower storage costs, comply with regulations, recover from disaster, and better use their information.

Last Close Stock Review

On Friday, July 28, 2017, the stock closed the trading session at $35.19, climbing 1.24% from its previous closing price of $34.76. A total volume of 1.75 million shares have exchanged hands, which was higher than the 3-month average volume of 1.08 million shares. Iron Mountain's stock price advanced 1.35% in the last one month and 1.24% in the past three months. Furthermore, since the start of the year, shares of the Company have gained 8.34%. The stock is trading at a PE ratio of 96.94 and has a dividend yield of 6.25%. The stock currently has a market cap of $9.18 billion.

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SOURCE: Pro-Trader Daily