Enterprise information systems management company Iron Mountain has entered into a definitive agreement to acquire the U.S. operations of IO Data Centers, a colocation data center services provider based in Phoenix, Arizona, for $1.315 billion plus up to $60 million based on future performance and subject to customary adjustments.

With the transaction, Iron Mountain will acquire the land and buildings associated with four data centers in Phoenix and Scottsdale, Arizona; Edison, New Jersey; and Columbus, Ohio. The existing data center space in the four owned facilities totals 728,000 square feet, providing 62 megawatts (MW) of capacity with expansion potential of an additional 77 MW in Arizona and New Jersey, said the company in a statement.

The transaction is anticipated to close in January 2018, subject to satisfaction of customary closing conditions.

Ardea Partners, Evercore, and Centerview Partners are serving as financial advisors to Iron Mountain. Morgan, Lewis & Bockius; Sullivan & Worcester; Weil, Gotshal & Manges are serving as legal counsel to Iron Mountain. Barclays and JP Morgan also served as financial advisors to Iron Mountain on the transaction.

Goldman Sachs are serving as financial advisors, and Simpson Thacher & Bartlett are serving as legal counsel to IO.

[Image courtesy: IO]