Rackspace is going private after private equity firm Apollo Global Management agreed a $4.3 billion (£3.26bn) deal to take control of the cloud hosting firm.
Rumours of a takeover by Apollo have persisted in the past few weeks, although it was estimated that a $3.5 billion deal (£2.65bn) could be in the works ahead of Rackspace’s ‘Solve’ customer event earlier this month.
The company announced its intent to study strategic alternatives two years ago and claims the Apollo agreement will deliver “immediate, significant and certain cash value” to its investors and give Rackspace greater ability to take advantage of a growing market for managed cloud services.
“Apollo and its partners take a patient, value-oriented approach to their funds’ investments, and value Rackspace’s strategy and unique culture. This is an exciting transaction for Rackspace and we look forward to working closely together.”
“We are tremendously excited about the opportunity for our managed funds to acquire Rackspace,” added David Sambur, Partner at Apollo. “We have great respect for the company’s talented employees and their commitment to deliver expertise and exceptional service for the world’s leading cloud platforms.”
Rackspace works with a number of public cloud vendors, including Mivrosoft and AWS, while earlier this month it claimed to have reached one billion server hours operating in production-ready OpenStack clouds. Rackspace was a co-founder of the OpenStack cloud movement, along with NASA, and said that it has more experience building OpenStack clouds than any other company.
The deal is expected to be completed in the fourth quarter of this year.
Boeing Starliner space capsule set for first crewed flight into orbit after years of delays,…
Google clashes with US Justice Department in closing arguments as government argues Google used illegal…
Prominent Stanford University AI scientist Fei-Fei Li reportedly completes funding round for start-up based on…
Apple shares surge on optimism that new AI-focused hardware launches will drive renewed sales, starting…
Biden vetoes Republican-backed measure amidst dispute over 'joint employer' status for contract workers, affecting tech…
Lawyers in US social media addiction action say strict controls on Douyin in China show…