Cloud player Rackspace goes private in $4.3B deal

A private equity firm has signed an agreement to buy major cloud player Rackspace for $ 4.3 billion.

Rackspace announced today that Apollo Global Management, a U.S.-based investment manager, will acquire the company in a deal that will give Rackspace shareholders $ 32 per share.

“Our board, with the assistance of independent advisors, determined that this transaction, upon closing, will deliver immediate, significant and certain cash value to our stockholders,” said Graham Weston, co-founder and chairman of Rackspace, in a statement. “We are also excited that this transaction will provide Rackspace with more flexibility to manage the business for long-term growth and enhance our product offerings.”

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InfoWorld Cloud Computing

By going private, Rackspace looks to fuel its cloud evolution

Rackspace, a company that was an early player in the cloud market, is being forced to evolve or continue to be left behind.

The cloud and web-hosting company announced today that it’s being acquired by Apollo Global Management, a U.S.-based private equity firm, and will become a private company. It’s a move analysts say will enable Rackspace to make big changes without worrying about an anxious or angry response from shareholders.

Under the $ 4.3 billion deal, Rackspace stockholders will receive $ 32 per share. The purchase is expected to be finalized in the fourth quarter, according to the company.

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Computerworld Cloud Computing