TechTaffy

tech:

taffy

Rackspace going private in $4.3 billion deal

By TechTaffy Desk

Managed cloud company Rackspace has entered into a definitive agreement with Apollo Global Management, to be acquired for $32.00 per share in cash, for a total of $4.3 billion. In connection with the transaction, funds managed by Searchlight Capital Partners will make a strategic equity investment in the acquired company. Upon completion of the deal, Rackspace will become a privately held company. 

The transaction is expected to close in the fourth quarter of this year, and is subject to the conclusion of the applicable antitrust waiting periods in the United States, the European Union and Israel, stockholder approval, and other customary closing conditions.

Financing is being provided by Citigroup, Deutsche Bank, Barclays and Royal Bank of Canada. PSP Investments Credit has also committed to provide a portion of the financing. Citigroup, Deutsche Bank, Barclays and RBC Capital Markets are acting as financial advisors to Apollo. Paul, Weiss, Rifkind, Wharton & Garrison is acting as legal advisor to Apollo.

Goldman Sachs is acting as financial advisor to Rackspace and Wilson Sonsini Goodrich & Rosati, is acting as its legal advisor. Morgan Stanley also provided services in connection with the transaction.

[Image courtesy: Rackspace]

Just in

AI

Lockheed Martin partners with IBM to enhance AI tools for defense applications

Lockheed Martin is integrating IBM’s Granite large language models (LLMs) into its AI Factory.
IT

Zettabyte, Foxconn ink data center partnership

Zettabyte, a company specializing in AI data center software and infrastructure, has entered into a partnership with Hon Hai Technology Group (Foxconn).
Fundings

Sitemate raises $18M (Australia)

Australia-based Sitemate, a software company developing no-code platforms for industries like construction and engineering, has raised $18 million.
Series A

Tembo raises $14M

Cincinnati, Ohio-based Tembo, a Postgres managed service provider, has raised $14 million in a Series A funding round.
Around the web

Raspberry Pi is now a public company — TC

Raspberry Pi priced its IPO on the London Stock Exchange on Tuesday morning at £2.80 per share, valuing it at £542 million, or $690 million at today’s exchange rate, writes Romain Dillet.