Autonomy is to acquire Iron Mountain’s online back up and recovery, digital archiving and eDiscovery solutions for US$380 million in cash.

Iron Mountain first entered the digital business 10 years ago as a natural extension of its core services to address a clear customer need. Recently the digital business faced a number of challenges resulting from a rapidly changing environment. It was decided that the company would no longer continue to invest in the technology development and meet its return requirements and that "exploring strategic alternatives for the digital business" was the in the best interests of the stockholders.

“This transaction is another significant step in delivering on the commitments we made in our three-year strategic plan announced in April and we are very pleased with the outcome of this process,” said Richard Reese, Iron Mountain’s executive chairman and chief executive officer. “Autonomy is a global leader in infrastructure software for the enterprise assuring that our customers will be well serviced and our employees will have greater opportunities.

"This was the right transaction at the right time for our customers, our employees and our shareholders. As we move forward, Iron Mountain will continue to deliver technology services to solve our customers’ digital information management challenges through partnerships.”

The company will retain its software escrow business, which is currently included in its Worldwide Digital Business segment, and other technology services such as its Digital Record Centers for Images and Medical Images.

JP Morgan Securities and Morgan Stanley & Co are serving as lead and co-financial advisors, respectively. The acquisition is subject to regulatory review and customary closing conditions and is expected to close within approximately 45 to 60 days.

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