Apollo Global is buying Rackspace for $4.3 billion

Apollo Global is buying Rackspace in a $4.3 billion deal, taking the cloud-computing company private.

Rackspace will be acquired for $32 per share in cash, the statement announced on Friday. That’s 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, which is subject to approval from antitrust regulators in the US, the European Union, and Israel.

“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, said David Sambur, Partner at Apollo, in the statement.

Citigroup, Deutsche Bank, Barclays and Royal Bank of Canada are providing financing for the deal.

More to come …

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