Iron Mountain (NYSE: IRM) is acquiring email and content archiving firm Mimosa Systems for $112 million in cash, adding to the information management giant's growing data archiving business.
The company got its current CEO, Bob Brennan, from Connected, and its digital division president, Ramana Venkata, from Stratify. Iron Mountain said it plans to retain the Mimosa team, which will "become an integral part of Iron Mountain Digital." Mimosa CEO T. M. Ravi will become chief marketing officer for Iron Mountain Digital.
The addition of email, SharePoint and file archiving firm Mimosa gives Iron Mountain an on-premises archiving option to complement its cloud-based archives. The company called itself "a one-stop shop for data capture, archiving and management," giving customers "greater flexibility and choice for managing their information."
Iron Mountain said the deal will also let it "extract intelligence from the information it manages both on-premises and in the cloud."
Venkata said in a statement, "We acquired Mimosa because we believe it offers the best archiving technology on the market, and the company shares our philosophy to help customers reduce the cost and risk of storing and managing information. By combining Mimosa's on-premises archive with our cloud-based technologies, Iron Mountain can now store, recover and discover digital content wherever it resides. This is a great example of the type of technology acquisition that fits well within our long-term growth strategy."
Mimosa's NearPoint archiving platform boats more than 1,000 enterprise customers, and also offers applications for retention and disposition, eDiscovery, compliance supervision, classification, recovery and end-user search. The company has raised about $65 million, giving its investors a nice return on their money.
Iron Mountain said customers can choose NearPoint for on-site archiving or the company's Total Email Management Suite, powered by Mimecast technology, for email archiving in the cloud. And Iron Mountain's Digital Record Center for Compliant Messaging takes care of email that must meet SEC regulations.
Iron Mountain added that NearPoint will also complement its Stratify Legal Discovery Service and eVantage on-site early-case eDiscovery assessment tool.
Enterprise Strategy Group analyst Brian Babineau called the deal a "very aggressive move by Iron Mountain. They could have purchased technology and tried to build market share themselves, but they paid more and got a good number of customers and good technology."
Integration with existing products will be the company's next challenge "to get a payoff," Babineau said, and he added that "they also need to do some portfolio rationalization, as they have three archiving products."
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