Rackspace Buys Cloud Computing Firms For Up To $28 Million (RAX)


Rackspace (RAX) bulks up with two small deals to take on Amazon (AMZN) in the fast-growing cloud computing industry: The hosting company has picked up Slicehost ad Jungle Disk for $11.5 million in cash and stock and up to $16.5 million in earnout.

Rackspace shares are up 2.6% to $5.09; they’re still down some 50% from the company’s August IPO.