Monday, August 29, 2016

Rackspace Acquired For $4.3B By Apollo Global

San Antonio-based Rackspace said late Friday that it has agreed to be acquired by private equity investor Apollo Global Management, in a deal worth $4.3 billion. Rackspace said Apollog GLobal will pay $32.00 per share in cash for Rackspace, with an additional strategic equity investment in the company by Searchlight Capital Partners, L.P. The acquisition will take Rackspace off the public markets, and return it to private held status. The deal had been rumored for a number of weeks, with the final price higher than an earlier rumor of $3.5 billion.