M&A: Full Circle Electronics Acquires IT Asset Disposition (ITAD) Business to Expand E-Waste Reduction Services

Full Circle Electronics (FCE), backed by private equity firm Tide Rock, has acquired an IT Asset Disposition (ITAD) business from SIPI Asset Recovery. Financial terms of the deal were not disclosed.

Full Circle gains ITAD geographic reach across Northern California, Illinois, Texas, Mexico and Columbia, the buyer said. SIPI ITAD provides "full ITAD pick-up scheduling system, detailed auditing, and integrated testing, wiping, and grading for optimal data security and product quality," Full Circle said. Headcount figures for the combined company were not disclosed.

Tide Rock has owned Full Circle since September 2022. Additional Full Circle company brands include Westech Recyclers, R2Disassembly and Urban Mining Squared.

M&A List: See hundreds of M&A deals involving sustainability, green IT services and renewable energy companies here.

IT Asset Disposition (ITAD) Merger and Acquisition: Executive Perspectives

In a prepared statement about the deal, Mark Papp, president of Tide Rock Yield Co., said: “We are thrilled to welcome the SIPI ITAD division to Full Circle Electronics. This acquisition adds to Full Circle’s expertise, capacity and geographic footprint. With these new locations, Full Circle can provide even better service to our enterprise customers across the US and now, for the first time, expand our reach to Latin and South America as well.”

Added Tracy Haslam, CEO of Full Circle Electronics: "Combining two high integrity ITAD and recycling businesses not only benefits existing Fortune 500 clients but better serves the growing IT and electronics asset disposition market. SIPI ITAD's workflows are flexible and robust, ensuring alignment with each client's specifications and providing stronger opportunities for stability and growth. Our combined footprint creates better sustainability partnerships, more efficient logistics across locations, and enables us to create a balanced workload for faster, and safer, corporate pickup and processing. This acquisition will provide the best of both worlds! I’m truly optimistic for Full Circle Electronics’ future, moving forward.”

IT Asset Disposition (ITAD) Market Growth Forecast, Trends

Demand for IT asset disposition (ITAD) appears strong. Indeed, 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.

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.

Customer demand is driving new ITAD partnerships and software development efforts. Example moves in October 2023 included:

• Dynamic Lifecycle Innovations and global IT distribution giant TD Synnex are working together to help channel partners and customers achieve ESG goals, while driving reuse or recycling of IT equipment.
• ScalePad, an MSP software provider, has expanded its IT Asset Disposal software to cover a "broader range of asset types." The effort includes "full-service bulk disposal support, and is cost-free with no hidden fees or shipping charges," ScalePad said. CEO Dan Wensley has worked in and around the MSP software market for more than two decades.

M&A activity in the ITAD market has been steady. For instance, Elemental Holding Group acquired Colt Recycling, an e-waste recycler and ITAD company, in June 2023.

Meanwhile, 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.

More Companies, Experts to Know

Meanwhile, seven ITAD companies are listed in our Sustainability Partner Programs Database. Examples include:

• DMD Systems Recovery;
• HPE Partner Ready Vantage;
• Ingram Micro ITAD and Ingram Micro Lifecycle;
• Iron Mountain Partner Program;
• Sage Sustainable Electronics Partner Program
• ScalePad Lifecycle Manager; and
• Shyft Multi-Vendor Solution, part of TD Synnex

If you're seeking to get started in the ITAD market, key advisors include Todd Zegers, president of Circular Integrity, based in Newport Beach, California. Zegers has worked in and around the e-waste and ITAD markets since 2003 or so. We'll share more about Zegers and Circular Integrity in the weeks and months ahead.