Iron Mountain is pursuing strategic alternatives for the company's digital business that may include the sale of the division.
The firm made the announcement as part of the release of a strategic plan designed to enhance stockholder value and return on invested capital. Iron Mountain said it has formed a committee to evaluate financing, capital, and tax strategies, as well as expand its international portfolio.
With respect to the digital business, Iron Mountain said that it entered the segment 10 years ago as a natural extension of its core storage activities. However, the business has recently "faced a number of challenges resulting from a rapidly changing environment," according to the firm.
After a strategic review that began last fall, the firm decided that it could not continue investing in technology development and meet its requirements for a financial return. The potential sale would include the company's digital archiving, eDiscovery, and online backup and recovery solutions. In the future, Iron Mountain will address its customers' requirements for digital storage services through partnerships, the company said.
Iron Mountain also said that the decision does not affect the company's medical image archiving offerings, its Digital Record Center for Medical Images product, or the company’s broader portfolio of healthcare information management products, including electronic medical record (EMR) enablement services. These operations are in the company's Healthcare Services group.
