The acquisition provides strategic proximity to the San Francisco Bay Area’s myriad tech firms. | MD_Photography/Shutterstock

Arizona-based ITAD firm DMD Systems Recovery has acquired Basket Materials in a bid to provide services to California’s growing tech market and local data centers.

“The move to the Bay Area allows us to best support our key customers both headquartered there and with large data center footprints in nearby markets like Sacramento,” said Jon DeMent, vice president of DMD, in a press release. “The new site will immediately improve our ability to provide local technical support, offer more easily accessible asset inventories, and create a positive impact towards our commitment to emissions reductions by limiting the distance retired assets are transported.”

DMD will retain all Basket Materials employees as part of the acquisition. The Bay Area facility, already R2v3 certified, will also gain NAID AAA certification to enhance security and compliance. 

“DMD will retain all teammates and look to immediately grow the team as we anticipate another year of 50% organic growth,” said Aaron Zeper, CEO of DMD. “We look forward to both organic and acquisitive growth in 2025. So for any ITAD who wants to be a part of this mission, please reach out.”

Basket Materials founder Patrick Kelly and CFO Sara Doran will join DMD’s leadership team.

“The combination of these two ITADs, based on common goals and values, accelerates the pace at which we bring our industry-leading services to a greater number of companies who understand Reuse First and the impact it has on our environment,” said Doran in the press release. 

In 2023, of the more than 275,000 assets DMD processed, around 100,000 were reused – a slight dip from 2022 and a significant drop from 2021. More than 150,000 assets were reused out of the roughly 200,000 DMD processed that year, according to the company’s impact report. By weight, DMD in 2023 processed about 1,800 metric tons of electronics, and 1,135 metric tons of that total was repaired and reused. 

In November 2023, DMD opened its second facility in Austin, Texas, expanding the reach of its reuse-first ITAD business. Headquartered in Palo Alto, California, Basket Materials holds R2v3, ISO 14001, ISO 45001 and ISO 9001 certifications.

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