Data storage company Recall rejects $1.82 bn buyout offer from Iron Mountain

US Data storage company Recall Holdings today said that it has rejected an A$2.2-billion ($1.82 billion) buyout offer from its larger rival Iron Mountain Inc.

Based in Georgia, the US company listed on the Australian Securities Exchange (ASX), Recall rejected a A$7 per share buyout offer from Boston-based Iron Mountain, saying that the 9.4 per cent premium offered is too low since the merger would bring in cost savings of A$250 million annually.

Iron Mountain's offer comprised around 18 per cent cash and 82 per cent Iron Mountain shares

"The proposal does not reflect the significant and unique value creation that a combination of these businesses would generate, including the potential to realise substantial synergies," Recall said in a statement to the ASX Monday.

Recall, which was demerged from Australian logistics giant Brambles Ltd in December 2013, said that it would be open to discuss further if Iron Mountain ''made an offer that reflects the significant value creation of the merged companies."

Recall also said that the potential value creation from a merged company is estimated to be around $3.9 billion, and the premium offered over Recall's 12 December 2014 trading price is less than 5 per cent of the total value creation, while creating value for Iron Mountain to 49 per cent of its current market capitalisation.

Recall is a global leader in information management solutions, offering customers complete management of its physical and digital information assets.

Recall services more than 80,000 customer accounts in over 300 dedicated operation centers, spanning five continents in 24 countries, while its larger rival Iron Mountain services more than 156,000 clients in 36 countries on five continents through more than 1,000 facilities and 17,000 employees.