Apollo Global Management has entered into a definitive agreement to acquire Rackspace, a cloud computing company, for $32 per share. The transaction is valued at $4.3 billion, and is set to close in Q4 2016. Upon completion, Rackspace will become a privately-held company.
Rackspace has been a publicly traded business on the New York Stock Exchange since 2008. Serving many Fortune 100 businesses, Rackspace has customers in more than 120 countries on four continents. In 2015, the company reported $2.0 billion in revenue.
Graham Weston, Co-Founder and Chairman of the Board of Rackspace, said the transaction will provide the company with more flexibility to manage long-term growth, as well as enhance its product offerings.
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“This transaction is the result of diligent analysis and thoughtful strategic deliberations by our board over many months,” Weston said in a statement. “We are confident that as a private company, Rackspace will be best positioned to capitalize on our early leadership of the fast-growing managed cloud services industry.”
