Freightways Acquires Archive Security

Freightways Ltd. announced an unconditional agreement to purchase the business and assets of the records management company, Archive Security Limited. The acquisition is effective March 1.

The acquisition price of $7.5 million will be paid in two cash installments – 50 percent on March 1, the balance on June 1.

 “We see the acquisition of Archive Security as being consistent with that growth strategy,” says Freightways managing director, Dean Bracewell. Through Online Security Services the company has a growing presence in three key areas of the Information Management sector - records management, secure document destruction and offsite computer media management.

“While it currently contributes only a small part of Freightways’ revenue and earnings, we believe that records management in particular represents a real growth opportunity, as we estimate only around half of New Zealand businesses currently outsource the management of their records,” he says.

Archive Security has operated in the records management industry since it was set up 17 years ago and has sites in Wellington and Auckland. The Auckland operation will be integrated with the current Freightways Auckland business, while the Wellington facility will facilitate ongoing growth, as Freightways existing Wellington facility is approaching capacity. Bracewell estimates that the Archive Security acquisition will lift Freightways to No.3 by volume in the New Zealand records management industry.