Rackspace is about to go private after it was revealed that Apollo Global, a private-equity firm, has agreed to buy the cloud-computing company in a $4.3 billion deal. It was only on August 3rd that reports surfaced that Rackspace was looking to sell itself.
The company announced on Friday that Rackspace would be acquired for $32 per share in cash. The price is a 38% premium to Rackspace’s closing price on August 3, and 6% above the stock’s closing price on Thursday.
Rackspace’s board unanimously approved the transaction, but the deal is still subject to approval from antitrust regulators in the US, the European Union, and Israel.
The deal is expected to close in the fourth quarter of this year.
David Sambur, a partner at Apollo, commented, “We have great respect for the company’s talented employees and their commitment to deliver expertise and exceptional service for the world’s leading cloud platforms.”
Disclaimer: We have no position in Rackspace Hosting, Inc. (NYSE: RAX) and have not been compensated for this article.