Software firm Autonomy is to acquire part of Iron Mountain's digital division for $380m (£234.5m) as the company looks to bolster its data under management offerings.
Key acquired assets include digital archiving, e-discovery and online backup and recovery technology.
The purchase will add 6PB of data under management and over 6,000 customers to Autonomy's user base. The firm anticipates spending $10m on restructuring in the two quarters following completion of the deal.
Autonomy also confirmed that active Iron Mountain digital customers will continue to be supported without disruption.
Anne Lapkin, research vice president at Gartner, hailed the purchase as a very good move for Autonomy, noting that it fits perfectly with the firm's cloud strategy.
"Increasing a successful and very profitable part of its business is a sound move by Autonomy. The main part of the acquisition here is the 6,000 customers and not the technology from Iron Mountain itself," Lapkin told V3.co.uk.
"As buying customers can be cheaper than acquiring them, it wouldn't be surprising to see the firm continue doing this as it is doing well from a cash perspective."
Meanwhile, Iron Mountain noted that the sale is part of its three-year strategic plan, and that it will deliver services to help customers deal with digital information management through partnership.
"Iron Mountain first entered the digital business 10 years ago as a natural extension of its core services to address a clear customer need. Recently the digital business faced a number of challenges resulting from a rapidly changing environment," the firm noted in a statement.
"[The] company undertook a strategic review of the digital business beginning last fall and concluded that it could not continue investing in technology development and meet its return requirements. [Therefore], exploring strategic alternatives for the digital business was in the best interest of Iron Mountain's stockholders."
Lapkin stopped short of proclaiming the beginning of the end for Iron Mountain, but called the firm's future into question.
"Iron Mountain has been innovative in the past, but the physical records business has been the mainstay of its growth. With the entire world moving to the digital environment it remains to be seen where the firm goes from here," she said.
Iron Mountain announced last month that it will close its public cloud storage business and shut it for good in the first half of 2013.
The firm stopped accepting new customers from 1 April, but will service existing customers until 2013.
Geoengineering on the sea floor near glaciers would form a new ice shelf to prevent melting
Alterations in capillary blood flow can be caused by body position change
Curiosity rover is in 'normal mode' but not transmitting scientific data back to base
NatWest outage comes a day after Barclays' IT systems shut out customers and staff