Private Equity Firm Tailwind Capital Acquires ITAD Service Provider DMD Systems Recovery

Private equity firm Tailwind Capital has acquired DMD Systems Recovery, an IT asset disposition (ITAD) service provider. martinwolf, a prominent M&A (merger and acquisition) advisor in the IT services market, assisted Tailwind on the deal. Financial terms of the deal were not disclosed. The deal reinforces steady M&A activity across the worldwide ITAD market.

Tailwind positioned the deal as a "strategic investment," though further in the announcement DMD disclosed that Tailwind is now the ITAD service provider's "majority investor."

DMD, backed by Tailwind, plans to "aggressively expand its sales coverage and services portfolio, as well as invest in new geographic locations and grow through M&A," the companies said.

Private Equity Acquires ITAD Service Provider: Business Backgrounds

DMD Systems Recovery, founded in 1996, is based in Tempe, Arizona. The company's ITAD services include logistics, inventory management, data destruction, value recovery, electronics recycling and decommissioning. DMD has three U.S. facilities, and a network of international partners across 50 countries, the company says.

On the partner front, DMD typically works with distributors, VARs and resellers, OEMs (original equipment manufacturers), agents, data center and colocation facilities, and telecom providers. DMD has 69 employees listed on LinkedIn as of September 2025.

DMD has M&A experience. The company acquired Basket Materials in 2024 to expand into Northern California.

Tailwind Capital, founded in 2003, is based in New York. The private equity firm focuses on lower middle market Industrial and Technical Service companies in the United States. Tailwind has invested in over 50 portfolio companies and over 250 add-on acquisitions since inception. The company had 41 employees listed on LinkedIn as of September 2025.

Tailwind Capital has extensive experience in and around the IT services market. Example investments include:

• Cloud for Good, a Salesforce Partner of the Year focused on the education and nonprofit sectors;
• GrayMatter, an industrial service provider;
• Nsight, a wireless service provider; and
• Onix, a cloud IT service provider and Google partner.

Private Equity Acquires ITAD Service Provider: Executive Perspectives

In a prepared statement about the Tailwind deal, DMD CEO Aaron Zeper said: “We are excited to partner with the Tailwind team and accelerate DMD’s growth trajectory during such a pivotal time for our industry as infrastructure spending and resulting hardware refreshes continue to accelerate within the enterprise,. DMD has a consistent track record of exceptional service delivery centered on our Reuse First mission; and with Tailwind’s investment, we will continue our lifecycle services expansion, extend the reach of our delivery capabilities, and expand the number of customers that we will serve.”

Added Will Fleder, partner at Tailwind Capital: “Aaron and the DMD team are extremely well-positioned in the quickly evolving ITAD market where services expertise is valued by customers seeking flexible, transparent and high-ROI IT asset disposition solutions. Tailwind’s deep history scaling IT services businesses makes us an ideal partner for DMD at this stage of their growth trajectory. We are thrilled to partner with Aaron and the DMD team to support the company’s continued organic growth and M&A strategy.”

Concluded Paul Lidsky, Tailwind Capital operating executive, and DMD executive chairman: “DMD represents a unique opportunity to invest behind a services-first solutions partner in a high-growth market that will benefit from accelerating compute and IT infrastructure advancement. Our deep industry expertise in adjacent and overlapping markets and approach to accretive M&A will help DMD to rapidly scale.”

IT Asset Disposition: M&A Activity And Market Growth Forecast

Meanwhile, M&A activity in the ITAD market remains strong. Among the reasons: Annual spending on ITAD is expected to reach $34 billion by 2030, up from $16.8 billion in 2022, according to Research and Markets. That's a 9.2% compound annual growth rate (CAGR), the researcher said.

Also, key investors in the e-waste market include the Microsoft Climate Innovation Fund -- which backs Circular Services, a startup that's building and expanding recycling infrastructure across the United States.

Among the key business drivers for ITAD spending: The growing desire to reduce e-waste -- thereby keeping PCs, laptops, smartphones, printers, networking equipment and consumer electronics out of landfills.