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.
Proofpoint launches feature to identify most targeted users
“One of the largest security industry misconceptions is that most cyberattacks target top executives and management.”
McAfee named Leader in Magic Quadrant an eighth time
The company has been once again named as a Leader in the Gartner Magic Quadrant for Security Information and Event Management.
Symantec and Fortinet partner for integration
The partnership will deliver essential security controls across endpoint, network, and cloud environments.
Review: Blue Mic’s Satellite headphones are good but...
Blue Mic’s newest wireless headphones deliver on sound, aesthetic, and comfort - but there is a more insidious issue at hand.
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.
IDC: Smartphone shipments ready to stabilise in 2019
IDC expects year-over-year shipment growth of 2.6% in 2019, while the world's largest market is still forecast to be down 8.8% in 2018.
Microsoft NZ bids Goldie a “fond farewell”
Microsoft New Zealand director of commercial and partner business takes new role across the Tasman. The search for his replacement has begun.