Rackspace found a buyer, going private
Cloud management provider and co-founder of OpenStack, Rackspace says it will be going private in a deal that will pay shareholders $4.3bn. Investment house Apollo Global Management will be paying $32 per share to buy out stakeholders and run Rackspace as a privately held company. Rackspace stock closed yesterday (prior to the announcement) at $30.19 per share.
Pending stockholder approval, the deal is expected to be completed in the fourth quarter of this year. News of the deal hardly comes as a surprise - reports of an imminent deal to take the company private surfaced weeks ago, causing Rackspace's stock price to soar in the meantime. The acquisition could help Rackspace in its efforts against larger competition in the cloud management space. The company had entertained the idea of a buyout in 2014, but backed out of talks.
Pending stockholder approval, the deal is expected to be completed in the fourth quarter of this year. News of the deal hardly comes as a surprise - reports of an imminent deal to take the company private surfaced weeks ago, causing Rackspace's stock price to soar in the meantime. The acquisition could help Rackspace in its efforts against larger competition in the cloud management space. The company had entertained the idea of a buyout in 2014, but backed out of talks.