From InfoWorld: A private equity firm has signed an agreement to buy major cloud player Rackspace for $4.3 billion.
Rackspace announced today that Apollo Global Management, a U.S.-based investment manager, will acquire the company in a deal that will give Rackspace shareholders $32 per share.
"Our board, with the assistance of independent advisors, determined that this transaction, upon closing, will deliver immediate, significant and certain cash value to our stockholders," said Graham Weston, co-founder and chairman of Rackspace, in a statement. "We are also excited that this transaction will provide Rackspace with more flexibility to manage the business for long-term growth and enhance our product offerings."
The acquisition is expected to close in the fourth quarter.
Rackspace, based in Texas, has been known as a significant player in the cloud market, competing in the same company as Alphabet's Google, Microsoft and AWS. It is also known as a web hosting provider.
However, Rackspace has focused on virtual private data centers, which are an extension of a private data center, while the cloud market is leaning heavily toward the pay-as-you-go, consumption-based pricing of the public cloud.
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