August 29, 2016

Rackspace to be privatized in $4.3 billion deal with Apollo Global

The private equity firm Apollo Global Management agrees to buy the cloud-computing provider

As reported by us earlier this month, Rackspace was on the verge of being acquired by an unnamed private equity firm.

The identity of the firm has now been revealed to be private-equity firm Apollo Global Management for $4.3 billion with shareholders set to receive $32 per share as the company goes private.

Rackspace, founded in 1998, made its name in providing cloud services and ‘fanatical’ customer support. The company claims to have customers around the globe, including several on the Fortune 100 list.

Graham Weston, Co-founder & Chairman of the Board at Rackspace, said that the acquisition was an outcome of solid analysis and that he believed it would allow the company to increase its product offering that would help long-term growth. Moreover, he claimed it would also allow the company to be more flexible in managing its business.

The company says that the transaction should close by the end of 2016, pending regulatory approval from U.S., Israel, and the European Union authorities.

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