Apollo Global Management LLC to acquire cloud services provider Rackspace Hosting Inc

Q.  Apollo Global Management LLC has agreed to acquire which cloud services provider?
- Published on 29 Aug 16

a. Rackspace
b. DigiSpace
c. TechnoSpace
d. None of the above

ANSWER: Rackspace
 
Cloud services provider Rackspace Hosting Inc said it would be acquired by Apollo Global Management LLC in a deal valued at USD 4.3 billion. The PE firm will boost investments in the technology sector.
  • Rackspace’s shares went up 4.3 percent at USD 31.50 in early trading on 25th August.
  • Offer represents a premium of 38.2 percent to Backspace’s closing price on August 3, the day prior to reports that the company was in advanced talks with PE firms for a go private deal.
  • Rackspace had been reported to earlier be in talks with Apollo
  • As part of the deal closing in the 4th quarter, PE firm Searchlight Capital Partners will also make an investment in Backspace
  • Apollo with USD 186 billion in assets have been stepping up investments in technology
  • Affiliates of the firm in July agreed to acquire Outerwall Inc, the owner of Redox video rental kiosks private in a deal valued at USD 1.6 billion
  • Rackspace leases server space and helps corporations store and access data in cloud.
  • It has focused on growing its cloud business in the face of rising competition from established players such as IBM Corp, Microsoft and startups in the field
  • Citigroup, Deutsche Bank, RBC Capital Markets LLC and Barclays were financial advisors while Goldman Sachs and Co advised Backspace.
  • Financing for the deal is being provided by CItigroup, Deutsch Bank, Barclays, Royal Bank of Canada are providing financing for the deal
  • Paul, Weiss Rifkind and Wharton & Garrison LLP are legal advisers to Apollo while Wilson Sonsini Goodrich & Rosati is Rackspace’s Legal Adviser.

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    Discussion

  • rahul soni   -Posted on 01 Sep 16
    Rackspace leases server space and helps corporations store and access data in cloud.
    It has focused on growing its cloud business in the face of rising competition from established players such as IBM Corp, Microsoft and startups in the field
    Citigroup, Deutsche Bank, RBC Capital Markets LLC and Barclays were financial advisors while Goldman Sachs and Co advised Backspace.
    Financing for the deal is being provided by CItigroup, Deutsch Bank, Barclays, R

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