technology

US firm Iron Mountain in talks to buy Web Werks


MUMBAI: US records management services company Iron Mountain is in advanced talks to acquire data centre service provider Web Werks India.

Web Werks is expected to attract a valuation of $180-200 million, said three people with direct knowledge of the matter.

“Currently, Iron Mountain is doing due diligence and have signed exclusivity clause with the company,” one of them said. “Other prospective buyers are also being explored by the investment bankers.”

Promoters of the company have appointed investment bank Deutsche Bank to look for buyers, the sources said.

Nikhil Rathi, cofounder of Web Werks, however, denied the development. “The information is not true,” he said in an email response to ET.

Spokesperson for Iron Mountain India did not respond to queries as of press time Friday.

“This acquisition would help Iron Mountain grow at a faster clip and will give it access to over 1500 clients,” said a person with knowledge of the deal.

Founded in 2000, Web Werks now provides colocation and cloud services across three countries with six geographically located data centres and points of presence, including Mumbai, Pune, Delhi-NCR, Dubai and Philadelphia.

Demand for data centres is expected to soar due to the proposed data localisation rule, given the size of the market.





READ SOURCE

Leave a Reply