Story image

Rackspace shakes up cloud strategy in new $4.3 billion deal

29 Aug 16

Rackspace is preparing to go it alone, following a $4.3 billion deal with Apollo Global Management that will see the managed cloud firm become a privately held company.

The move is expected to provide Rackspace with additional flexibility to manage the business for long-term growth and enhance its product offerings.

Rackspace co-founder and chairman of the board, Graham Weston, says the transaction is the result of diligent analysis and deliberations by the board over many months, and will deliver ‘immediate, significant and certain’ cash value to stockholders.

“We are confident that as a private company, Rackspace will be best positioned to capitalise on our early leadership of the fast-growing managed cloud services industry,” he says.

Taylor Rhodes, president and CEO of Rackspace, says the deal presents Rackspace with a ‘significant opportunity’ 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,” says Rhodes.

“This is an exciting transaction for Rackspace and we look forward to working closely together."

The transaction is expected to close in the fourth quarter of this year.

Lenovo DCG moves Knight into A/NZ general manager role
Knight will now relocate to Sydney where he will be tasked with managing and growing the company’s data centre business across A/NZ.
The key to financial institutions’ path to digital dominance
By 2020, about 1.7 megabytes a second of new information will be created for every human being on the planet.
Is Supermicro innocent? 3rd party test finds no malicious hardware
One of the larger scandals within IT circles took place this year with Bloomberg firing shots at Supermicro - now Supermicro is firing back.
Record revenues from servers selling like hot cakes
The relentless demand for data has resulted in another robust quarter for the global server market with impressive growth.
Opinion: Critical data centre operations is just like F1
Schneider's David Gentry believes critical data centre operations share many parallels to a formula 1 race car team.
MulteFire announces industrial IoT network specification
The specification aims to deliver robust wireless network capabilities for Industrial IoT and enterprises.
Google Cloud, Palo Alto Networks extend partnership
Google Cloud and Palo Alto Networks have extended their partnership to include more security features and customer support for all major public clouds.
DigiCert conquers Google's distrust of Symantec certs
“This could have been an extremely disruptive event to online commerce," comments DigiCert CEO John Merrill.