October 12, 2016

Rackspace could go public again: Founder

Co-founder who stands to make $606 million from sale says he expects Rackspace to not stay private for long

Following the news that Rackspace had been acquired by Apollo Global for $4.3 billion, the company’s co-founder and chairman Graham Weston today claimed that the company could go public again in the future.

In conversation with the San Antonio Express-News, Weston said that he was confident that Rackspace’s withdrawal from the markets was only a temporary measure that could change in the medium-term.

Graham Weston said :

I think it’s likely that Rackspace will go public again in the next five to seven years.

Rackspace’s shareholders are set to vote on Apollo’s offer of $32 a share in November – the best of three offers that were reportedly available to the company.

Weston added :

I think they (Apollo) were the high bidder for a reason. They spent a substantial amount studying Rackspace and the opportunity of Rackspace’s future.