Rackspace, a major cloud player is to be acquired by a private equity firm Apollo Global Management for $4.3 billion. Apollo is a US-based investment manager will acquire Rackspace giving its shareholders a $32 per share. Graham Weston, Co-founder, and Chairperson of Rackspace said in a statement that a significant and certain cash value will immediately be delivered to our shareholders upon closing of the transaction, determine the board with the assistance of the independent advisors. The transaction will provide more flexibility to enhance our product offerings and also to manage our business for long terms he further added. The acquisition will help the company grow said Taylor Rhodes, president and CEO of Rackspace.
Competing in the same market as AWS, Google and Microsoft Rackspace is a major player in the cloud market. While the cloud market is leaning towards pay-as-you-go, consumption-based pricing of the public cloud, Rackspace has focused on virtual private data centers which are an extension of the private data center. Even though it was a big brand once Rackspace has to go through a transition and going private will be a big help as they don’t have to worry about the quarterly numbers.