Rackspace to go private in USD 4.3 bln takeover by Apollo

News Broadband Global 29 AUG 2016
Rackspace to go private in USD 4.3 bln takeover by Apollo
Rackspace has agreed to go private in a takeover by Apollo Global Management valuing the company at USD 4.3 billion. Searchlight Capital Partners will also  make an equity investment in the company as part of the deal. 

The bid is worth USD 32 per Rackspace share, a premium of 38 percent on the company's share price on 03 August, the day before news of a possible takeover was reported. Rackspace said its board had been considering strategic options for several months and fully recommended the takeover to shareholders. As a private company, it will have more flexibility to pursue its strategy of multi-cloud services, the group said. 

Subject to shareholder and regulatory approval, the acquisition is expected to close in the fourth quarter. 

Categories:

Fixed,  IT

Companies:

Rackspace

Regions:

Global

Tags:

Enterprise equipment, Hosting - cloud - data centres, M&A buyouts & divestments

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