Cloud Computing company Rackspace will be acquired for $4.3 billion by private equity firm Apollo Global Management. Deal is expected to close in Q4 2016 and Rackspace stockholders to receive $32.00 per share in cash (a nice a premium of 38% on Rackspace’s stock price).
This acquisition is a clear sign of success for Rackspace’s change of strategy, whereby Rackspace eased off on its own cloud and managed services, and started offering third-party support for the public clouds of Amazon and Microsoft. This change of strategy started showing clear positive impact on its financial results earlier this year (see this post from 2 months ago), which sent the right investor signals and paved the way to this acquisition.
For more details on the acquisition see here.
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