Rackspace Announces $4.3 Billion Going-Private Transaction
On August 26, 2016, Rackspace, a worldwide managed cloud company, announced that it has entered into a definitive agreement to be acquired by affiliates of certain funds managed by affiliates of Apollo Global Management for $32.00 per share in cash. In addition, funds managed by Searchlight Capital Partners will make a strategic equity investment in the acquired company. Upon completion of the transaction, which has a total value of $4.3 billion, Rackspace will become a privately held company. Wilson Sonsini Goodrich & Rosati advised Rackspace in the transaction.
According to a press release, the $32.00 per share cash consideration represents a premium of 38 percent when compared to Rackspace's unaffected closing stock price on August 3, 2016, the last trading day prior to news reports speculating about a potential transaction. The transaction has been unanimously approved by the Rackspace board of directors and is expected to close in the fourth quarter of 2016, subject to stockholder and regulatory approvals and other customary closing conditions.
The WSGR team advising Rackspace includes partners John Aguirre, Bradley Finkelstein, Erik Franks, Parag Gheewala, Paul Jin, Martin Korman, Eileen Marshall, Jim McCann, and Douglas Schnell; Of Counsel Matt Staples and Gerard O'Shea; counsel Kimberly McMorrow; visiting foreign attorney Heather Fleming; and associates Aaron Barker, Rachel Cohn, Mark Cornillez-Ty, Scott Craig, Liz Do, Brandon Gantus, John Miller, John Olson, JD Peters, Amanda Urquiza, Aaron Wax, Sean Wilkinson, and Christopher Williams.
For more information, click here to read the Rackspace press release.