S3 Recycling Solutions has acquired iGlobal Asset Management, which specializes in IT asset disposition (ITAD) and medical asset disposition. Financial terms of the deal were not disclosed.
IT Asset Disposition (ITAD) M&A: About the Buyer and Seller
S3 Recycling Solutions, founded in 2007, is based in Springfield, Tennessee. CEO Rod McDaniel and an investor group have owned S3 since 2016. The company's vision is to "combat our planet’s e-waste epidemic by employing both environmentally and financially responsible processes for a stronger, safer global community."
S3's key areas of expertise include ITAD, e-waste reduction and recycling, secure data destruction and outsourced surplus management. S3, which serves more than 300 customers across North America, has ranked as an Inc. 5000 fastest-growing private company in America.
iGlobal Asset Management, founded in 2009, is based in Fullerton, California -- near Anaheim. The company specializes in e-waste recycling, ITAD management, laboratory and medical equipment. Key services include data destruction, data wipe, product destruction, data degaussing and hard drive sanitization.
Rod McDaniel, CEO, S3 Recycling Solutions
This is S3’s first acquisition under current CEO Rod McDaniel. The purchase increases S3’s employee headcount by roughly 17%; expands annual revenue by 10%; and brings its number of facilities to three, totaling over 200,000 square feet, S3 said.
E-Waste Reduction M&A: Executive Perspectives
In a prepared statement about the deal, S3 CEO Rod McDaniel said: “This acquisition marks a significant milestone for our organization, and it is one component of a strategic five-year plan that the S3 Board is implementing. iGlobal was the right fit for our overall mission. We will leverage its specialty in medical asset resale, which is a S3 service offering that is quickly growing. And, we now have a facility on the West Coast that will be an integral part of expanding our capabilities. S3’s national reach, combined with iGlobal’s regional expertise, ensures that clients will benefit from an enhanced service experience. We are excited to welcome the iGlobal team and all its stakeholders to the S3 family.”
Added Shahin Joudat, owner and CEO of iGlobal Asset Management: “S3 Recycling Solutions’ values and culture made me feel comfortable entrusting my company to them. Rod’s vision for the future of the company ensures that iGlobal will reach its fullest potential.”
Shahin Joudat, owner and CEO, iGlobal Asset Management
IT Asset Disposition (ITAD) Market Growth Forecast, M&A Activity
S3's ITAD focus is easily explained: 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.
Venture capital has also flowed into the market. In July 2024, for instance, Microsoft’s Climate Innovation Fund invested in Cyclic Materials, a startup that serves ITAD companies and improves hard drive recycling processes.
ITAD 2024 Conference
So what's next? A market reality check will arrive at ITAD 2024 -- an IT asset disposition conference scheduled for July 23-24 in Miami, Florida. The event typically attracts roughly 1,200 attendees, 100+ exhibitors, 50+ speakers and more.
Sustainable Tech Partner is a digital media platform and online community. Our content empowers technology partners and their customers to achieve a sustainable future.