Dubai: The UAE based logistics major Aramex will sell its subsidiary Information Fort, the document storage and clearing services provider. A unit of US-based Iron Mountain Inc. will be the buyer.
The value of the likely deal has not been revealed, but the Aramex Board of Directors has given its go-ahead for the deal to happen. Iron Mountain is a global leader in information management services. (Aramex said it shall fully disclose the details of the transaction upon closing, which is expected in the third quarter of 2021. The UAE company will not hold any stake thereafter in Information Fort.)
Bashar Obeid, CEO of Aramex, said: “Today’s sale of InfoFort is a major milestone for Aramex, which will allow the group to focus entirely on growing the group’s core logistics businesses globally."
Aramex has not given any formal reason for the sell-off, but the company has been focussing on higher margin generating side of its business. After facing a rough first-half 2020 because of the pandemic breakout, Aramex quickly pivoted to make full use of burgeoning demand for ecommerce services across the UAE and Gulf markets.
This being the case, documents related business would be less of a focus area, according to market watchers.
"We are pleased that Iron Mountain recognizes the strength and position of InfoFort as a market leader in the region, as well as its future potential," Obeid added. "We are confident that under Iron Mountain’s stewardship, InfoFort will continue to grow and lead the industry in the region.”