Rackspace goes private

privateCloud management provider Rackspace has decided that it will pay its shareholders more than $4.3 billion and go private.

Apollo Global Management says it will pay $32 per share to buy out stakeholders and run Rackspace as a private company. The deal is not that bad, the stock closed at $30.19 per share.

The deal is expected to be completed in the fourth quarter of this year. Actually this was all predicted a few weeks ago and this had caused Rackspace’s stock price to go up so the closing prices is little to do with the actual value of the company.

Rackspace wants to see off larger competition in the cloud management space and had been mulling over a buyout since 2014.

Rackspace CEO Taylor Rhodes said that the outfit had been presented with a significant opportunity today as mainstream companies move their computing out of corporate data centers and into multi-cloud models. Apollo and its partners take a patient, value-oriented approach to their funds’ investments, and value Rackspace’s strategy and unique culture.”