April 28, 2015 / 3:05 PM / in 4 years

Iron Mountain to buy Recall Holdings for about $2.2 billion

(Reuters) - Document and data storage services company Iron Mountain Inc (IRM.N) said it will buy Australia-listed data protection services provider Recall Holdings Ltd REC.AX for about $2.2 billion in cash and stock.

Recall shareholders have the option to receive either 0.1722 Iron Mountain shares or A$8.50 in cash for every share they own.

The total cash consideration cannot exceed A$225 million ($179 million), Iron Mountain said.

Atlanta, Georgia-based Recall rejected an offer of A$7 per share from Boston-based Iron Mountain in December, saying the premium was too low.

Iron Mountain said on Tuesday it would establish a secondary listing on the Australian Securities Exchange once the transaction is completed.

Shares of the company rose 5.5 percent to $38.25 on the New York Stock Exchange.

Recall shares closed at A$7.62 on Tuesday on the Australian Stock Exchange. The deal was announced after close of the Australian market.

Goldman Sachs was the financial adviser and Weil, Gotshal & Manges LLP and Minter Ellison legal counsels to Iron Mountain.

Bank of America and UBS advised Recall.

Reporting by Radhika Rukmangadhan in Bengaluru; Editing by Sriraj Kalluvila

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