This acquisition will provide Rackspace with a broad customer base and deep alliances spanning all of the major cloud operators as it attempts to be a multi-cloud management leader.
The deal comes only months after Rackspace agreed to buy TriCore Solutions, an application management specialist that at the time was its largest acquisition to date.
Rackspace did not say what it will pay for Datapipe. The acquisition will be financed with debt and equity.
The combined entity would see annual revenue of $2.4 billion, and employ roughly 6,700 people. Both MSPs have substantial hosting businesses through their own data centers, as well as partnerships with hyper-scale cloud providers. Both are among the largest MSPs in the AWS ecosystem.
Datapipe’s infrastructure, custom-built automation tools, extensive certifications and high-skilled employees will be valuable additions to Rackspace’s portfolio.