Wisetek, a Cork-based company that specialises in the recycling and repurposing of used hardware, is to merge its US operations with the parent company of US "destruction services" firm DataKillers.
The company said financial terms of the deal with Computer Discounters were not being disclosed, but the expanded group revenues will be over €30 million for this financial year.
Wisetek anticipates growth in revenue to more than €50 million within the next two years. “We’re delighted because we’ve been working for a long time to try and break into the United States,” Wisetek chief executive Seán Sheehan said.
The new company will become one of the largest suppliers of refurbished IT equipment in the world.
Mr Sheehan said the company would now be looking at “one or two” other acquisitions in the US. “It would make sense,” he said. “We’ll let the dust settle on this one and then we’ll move on from there.”
The company also opened an office in Dubai in recent weeks to serve the Middle East. “We also see it as a stepping stone into Africa and developing countries,” he said.
Part of the work Wisetek does is management of data centres and Mr Sheehan said the planning delays that have brought the proposed development of an Apple facility in Athenry, Co Galway, into doubt “can’t be good for the reputation of the country”.
“It’s a pity it’s taken so long,” he said. “We do a lot of work with Apple and it’s a progressive company. With IT and how fast it moves, you need to be able to move with it. These things don’t help, and it can’t be good for the reputation of the country.”
DataKillers is headquartered outside Washington DC, strategically located in close proximity to address both the US federal government market and America’s largest data centre hub located in Virginia.
Data destruction
Datakillers and Wisetek now operate the largest fleet of mobile data destruction trucks across the US, providing US customers with national coverage for on-site data destruction and IT removal services.
Mr Sheehan said it was a “key strategic move” for the companies that would support its combined customers’ requirements.
“Together, both organisations have major multinational customers including major IT manufacturers, data centre cloud-services providers, financial institutions, pharmaceuticals and government agencies,” he said.
“These organisations consistently require centralised management control of IT asset disposal operations to ensure all data is secured in retired IT equipment before leaving their premises.”
Mr Sheehan added the merger with DataKillers would expand Wisetek’s services expertise from primarily managing data centre class products to incorporating end-user IT equipment including PCs, laptops, and mobile devices.
Computer Discounters chief executive Chris Scott said the “close partnership” would deliver “controlled data destruction services globally, to our combined multinational customers”.
“Our joining together is already proven to be a welcome development by these combined clients to deliver the global services they require from a single source,” he said.
“DataKillers’ extensive coverage in the US combined with Wisetek’s strength in Europe and Asian markets – plus, their customer management control systems – provide considerable market synergies.”
