October 11, 2018 (Boston, MA) – Covington Associates, a leading middle market investment bank announced its role as financial advisor to ESISO, LLC (“eSISO”), an industry leader in the remarketing and remanufacturing of enterprise data center assets, in the sale of its business to ITRenew, a leading global IT lifecycle management solutions provider backed by private equity firm, ZMC.
ITRenew and eSISO have been partners for over seven years and the combination was borne from a cultural alignment on prioritizing innovation and delivering first class customer service. The combined entity will boast nine processing facilities; two engineering offices; a global presence with locations in the United States, Europe, South America and China, and employ a workforce of more than 350 people.
Calling it a “game-changer for us as well as our industry,” ITRenew CEO Aidin Aghamiri said, “The circular economy requires specialists who will refurbish, reuse, remanufacture, and resale the valuable components inside data center equipment. With the acquisition of eSISO, we believe that we have created a unique organization that can provide all of those services under one roof. We are excited to bring our clients a set of truly differentiated services and capabilities.“
Loddy Chao, CEO of eSISO added, “We are excited to join the ITRenew team. This is a once in a lifetime opportunity to partner with ITRenew to build something special. We are humbled, excited, and ready to get to work.”
eSISO specializes in enterprise asset acquisition, remarketing and remanufacturing. With a global footprint, eSISO works with partners around the world to deliver quality IT hardware and solutions, with an emphasis on prompt delivery and exceptional customer service.
Aghamiri and Chao pointed to the combined company’s focus on data security, noting that, “As our clients face challenges never previously encountered in the hyperscale data center ecosystem, they must rely on a solution-oriented partner to navigate data security, engineering and operational nuances around asset decommissioning. We believe the combination of ITRenew and eSISO will provide a comprehensive set of solutions that have previously never been available to the industry.”
Sidley Austin LLP acted as legal advisor to ITRenew and DLA Piper LLP served as legal advisor to eSISO.
Terms of the agreement were not disclosed.
About Covington Associates
Covington Associates is an investment banking firm offering advisory services in the areas of mergers and acquisitions (“M&A”), capital raising, strategic advisory, fairness opinions, and valuations to middle-market companies across the Healthcare, Business Services, Consumer & Industrial, and Technology verticals. Founded in 1991, with offices in Boston, the vision for Covington has been to provide clients with the highest caliber of senior-level attention and to remain an advice driven and results focused organization. Since its inception, Covington Associates has completed more than 200 transactions globally for both private and publicly traded companies totaling over $15 billion. Further information about Covington Associates can be found at http://www.covingtonassociates.com/overview.
eSISO is an industry leader in the remarketing, remanufacturing and value creation of retired enterprise data center assets. Founded in 1992, eSISO has been an important part of the circular economy by connecting major IT asset disposition (”ITAD”) companies with all sizes of VARs, OEMs, ODMs and end users. Since inception, eSISO has delivered superior returns to ITAD partners by providing a wide selection of strategic products and expansive supply-chain capabilities with an emphasis on best in class customer service to its downstream partners.
Headquartered in the heart of Silicon Valley, ITRenew supports the data erasure and data center decommissioning needs of some of the most large-scale, data-rich, privacy-focused organizations in the world. ITRenew’s technology-driven approach streamlines traditional data center decommissioning processes to deliver superior data and asset security, value recovery and IT sustainability. ITRenew was designated a Visionary in the Magic Gartner Magic Quadrant for IT Asset Disposition, Worldwide and named to the 2016 Inc. 5000, finishing among the top 10 percent of all ranked companies in gross revenues.
ZMC is a leading private equity firm comprised of experienced investors and executives that invest and manage a diverse group of media and communications enterprises. Founded in 2001, ZMC’s investment philosophy centers on operational value creation driven by targeted investment themes, deep sector expertise, and strong partnerships with industry and operating executives. ZMC approaches its investments in collaboration with management teams and has a successful track record of actively adding value to portfolio companies. ZMC is currently investing out of ZMC II, L.P. (www.zmclp.com)