Rackspace sale imminent?

Financial press are reporting that Rackspace is close to announcing a sale of some sort, probably to private equity outfits.

Rackspace floated the idea of allowing itself to be acquired in 2014, but decided against doing so after its new strategy to offer managed cloud services mostly worked.

Once a name to mention alongside Amazon Web Services, Rackspace just didn't have pockets deep enough to compete as an infrastructure provider. The move into services saw it take on management duties for AWS and other clouds.

Reports suggest news of a deal valuing the company at about US$4bn, a premium of about a billion on current stock prices, is imminent. ®

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