Apollo Global Completes Acquisition of Rackspace (RAX)
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Rackspace (NYSE: RAX) and affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, "Apollo") (NYSE: APO) today announced the successful completion of the previously announced transaction in which Rackspace was acquired by affiliates of funds managed by affiliates of Apollo for $32.00 per share in cash. In connection with the transaction, funds managed by Searchlight Capital Partners, L.P. also made a strategic equity investment in the acquired company.
As a result of the transaction, Rackspace has become a private company. Its common stock will no longer be listed for trading on the New York Stock Exchange, effective immediately.
"We are excited to begin this new chapter for Rackspace as a private company," said Taylor Rhodes, president and CEO of Rackspace. "I would like to thank our Rackers around the world who, throughout this process, have remained focused on serving our customers. Every day they deliver expertise and Fanatical Support for the world's leading clouds. We look forward to working with Apollo as we manage Rackspace for long-term growth and expand our early leadership of the managed cloud market. We believe that the best years for Rackspace are yet to come."
"We are pleased for our managed funds to invest in Rackspace and are excited to be associated with the company and its world class employees, who go to enormous lengths to offer industry-leading expertise and service," said David Sambur, Partner at Apollo. "We look forward to working together with the Rackspace management team and its employees, as well as with Searchlight to help advance Rackspace's strategy and continue the company's strong heritage of innovation and customer satisfaction."
Citigroup, Deutsche Bank, Barclays and RBC Capital Markets, LLC acted as financial advisors to Apollo and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to Apollo.
Goldman, Sachs & Co. acted as financial advisor to Rackspace and Wilson Sonsini Goodrich & Rosati, Professional Corporation acted as its legal advisor. Morgan Stanley also provided services in connection with the transaction.
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