New York-based private equity firm, Apollo is taking cloud company Rackspace private in a deal valued at $4.3 billion. Rackspace's board of directors unanimously approved the transaction and recommends that stockholders vote in favor of the deal.
In addition of hosting customers' apps and data on a range of Public, Private and Hybrid Cloud infrastructure, Rackspace also provides technical expertise and offers 'Fanatical Support' to allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies. Headquartered in San Antonio, the company claims that it serves customers in 120 countries, including a majority of the FORTUNE 100.
Why Rackspace is going private ? Data Center Knowledge quoted John Engates, CTO of Rackspace, "Apollo sees a big opportunity in investing into growing in a market where Rackspace has already secured a considerable lead: helping customers get a handle on complex multi-cloud environments."
The transaction is expected to close in the fourth quarter of this year. The transaction is subject to the conclusion of the applicable antitrust waiting periods in the United States, the European Union and Israel, stockholder approval and other customary closing conditions.
Taylor Rhodes, President and CEO of Rackspace
We are presented with a significant opportunity today as mainstream companies move their computing out of corporate data centers and into multi-cloud models. Apollo and its partners take a patient, value-oriented approach to their funds’ investments, and value Rackspace’s strategy and unique culture.
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.
