Cloud service company Rackspace sold for $4.3 billion

Business / Tech
Rackspace

With this purchase, the company will no longer be a publicly traded company but will be held by a private firm, Apollo Global Management.

Rackspace is one of the largest cloud companies in the world and has been operating since 1998 in San Antonio, Texas. The company has had its hands in a variety of ventures over the years and also employed Robert Scoble (famous Google Glass evangelist) who helped establish Building 43 at Rackspace. Building 43 was a content and social networking website that was to help promote startups and new technologies, it has since changed its name to Rackspace Startups. With this purchase, the company will no longer be a publicly traded company but will be held by a private firm, Apollo Global Management. Apollo is not a technology company but an investment company aiming to, well, make money.

Rackspace will remain in San Antonio which is a relief to the locals there as the company has been a cornerstone for the local economy and job creation.

“The company stays put. It stays in San Antonio,” Engates said. “The leadership team that is in place today is continuing to stay in place. The ‘Rackers’ that are in San Antonio will get to stay in San Antonio, which is a good thing.”

“Oftentimes when you are a public company, you are under the microscope of many investors,” Engates said. “If you are a private company, a lot of that is not a thing. You don’t have to think about it. You just sort of execute and do.”

While many outside tech circles have never heard of Rackspace, it’s a safe bet that they’re involved in some ventures or working with companies you have heard of. It will be interesting to see where Apollo takes the company and how going from public to privately held will affect the company overall.

What do you think of the sale of Rackspace? Do you work for the company? Let us know your thoughts and comments below or on Twitter, Facebook and Google+.

  Source: KENS5
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