Apollo Global is buying Rackspace for $4.3B
I guess it was only a matter of time before they got bought out.
It&#x27;s tough to compete against one of Google, Amazon or Microsoft, competing against all 3 at the same time in an area that all three consider to be core to their future must just be cut throat!<p>It&#x27;s never great for a companies employee&#x27;s to be taken over by a private equity firm, if you actually find someone whose had a good experience then please let me know, but given that this is a 38% premium over what RAX was trading at when the deal leaked on august 3rd, this is almost best case for rack space employee&#x27;s and given that this is an all cash transaction they should get some liquidity out of the deal!!<p>Given that the RAX board unanimously approved the deal, I&#x27;m going to guess this is going through.<p>Often when a company is brought private by a PE firm they&#x27;ll combine it with other portfolio companies before spinning it back out. I don&#x27;t see any relevant companies in Apollo&#x27;s portfolio that could be joined to RAX.<p>If you are wondering who in wall street makes money on these types of deal, its the usual suspects. Everyone wets their beak in take over transactions:)<p>- Financing provided by Citi, Deutsche, Barclays, RBC;<p>- Goldman advised RAX, Morgan Stanley also provided services in connection w&#x2F; deal; Citi, Deutsche, Barclays, RBC advised Apollo