M&A: Sage Sustainable Electronics Acquires ITAD Service Provider Relectro

Sage Sustainable Electronics, backed by private equity firm Closed Loop Partners, has acquired Relectro, a provider of electronics repair, refurbishment, logistics, device lifecycle management, IT Asset Disposition (ITAD) services.

This is M&A deal number 266 that Sustainable Tech Partner has covered so far in 2024. Related: See all M&A deals involving sustainability, climate tech and green IT services listed here.

Sage Sustainable Electronics Buys Relectro: ITAD Business Backgrounds

Relectro, founded in 2011, is based in Telford, Pennsylvania. The electronics repair company promotes refurbished products for continued use before disposal. Relectro provides repair-on-demand services to leading repair firms, insurance firms, mobile device providers and more. The business repairs roughly 25,000 assets per year. Example devices include wireless handsets, laptops, tablets and more, the seller said.

Sage Sustainable Electronics, founded in 2014, is based in Columbus Ohio -- though it has a new facility near Relectro's Pennsylvania headquarters. Sage's mission is to serve the following (and in this order): "The planet, our customers, our colleagues, our communities, our suppliers, and our shareholders."

Sage offers reuse and recovery solutions to businesses seeking to sustainably dispose of their IT assets. On average, the company refurbishes or recycles nearly one million devices annually on behalf of customers. In 2022, Sage sent 58% of its total processed devices to a second life, mitigating approximately 300 million pounds of CO2e annually according to the EPA's Electronic Environmental Benefits Calculator, Sage said.

Sage co-founders Bob Houghton and Jill Vaské helped to "define best practices for the ITAD industry in security, asset management, and responsible recycling—including foundational support for the e-Stewards Certification program, the Microsoft Authorized Refurbisher program, and the Coalition for American Electronics Recycling," according to Sage.

Closed Loop Partners acquired a majority stake in Sage in 2023.

IT Asset Disposition (ITAD) M&A: Executive Perspectives

In a prepared statement about the Sage-Relectro deal, Bob Houghton, CEO of Sage Sustainable Electronics, said: “This marks an important milestone for Sage as we expand our platform with Relectro. Their wide-ranging partner network and deep technical expertise are key assets to our growth, adding strategic expertise to our platform, Relectro enables us to expand depot repair services for enterprise clients––extending lifecycles, reducing costs and increasing sustainability.”

Added Brian Itterly, founder & CEO of Relectro: “We look forward to this next phase of growth as a part of Sage Sustainable Electronics’ platform. For over a decade, Relectro has provided critical repair services for electronics––a key part of keeping devices in circulation for longer. Today, our repair and refurbishment services complement and build on Sage’s reuse and recovery services, offering a wider range of solutions for businesses across the country.”

Concluded Jackson Pei, co-head of Closed Loop Partners’ buyout private equity strategy: “Closed Loop Partners is proud to back Sage Sustainable Electronics’ acquisition of Relectro, laying the foundation for an expanded platform with strong operational processes, complementary geographical locations and continued progress toward electronics circularity. We look forward to supporting Sage’s continued growth with their now expanded IT Asset Disposition and repair services.”

This is the seventh investment to date from Closed Loop Partners’ buyout private equity group, which focuses on circular supply chains, recycling and reuse infrastructure, the firm said.

IT Asset Disposition (ITAD) M&A 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.