Liquid Web announced on Monday that it has signed an agreement to acquire Rackspace’s Cloud Sites business unit. After reports last week which stated the possibility of Rackspace going private, the current acquisition was deemed unexpected.
The acquisition will expose Liquid Web to a new sphere of customers, including designers, developers and digital agencies who use the Platform as a Service (PaaS) to host high traffic websites. According to Liquid Web, the Cloud Sites unit will remain in San Antonio and they will be working with Rackspace to ensure a smooth transition for these customers.
Matt Bradley, Vice President, corporate development and strategy, Rackspace said :
As Rackspace continues to focus on delivering expertise and Fanatical Support for the world’s leading clouds, and serving more enterprise customers, it made sense for us to sell the Cloud Sites business unit to Liquid Web.
Through the transaction, we are also pleased to welcome Liquid Web to the Rackspace Partner Network as an email reseller.
According to the press release, Cloud Sites has expanded Liquid Web’s portfolio and has added capabilities to simplify web hosting and cloud services.
Jim Geiger, CEO, Liquid Web said :
With the addition of Cloud Sites, we further our mission to empower web professionals all over the world to create content and commerce without worry, free of problems and devoid of even one bit of hesitation by providing absolutely flawless web hosting.