We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
On Friday, shares of the world’s leading hosting company, Rackspace Hosting , are soaring, up almost 12% in midday trading after the company is apparently in talks with private equity firm Apollo Global Management (APO - Free Report) regarding a takeover offer.
According to Reuters, who cite people familiar with the matter, Apollo Global is reportedly negotiating a price over $3.5 billion to acquire Rackspace. Since it announced it was working with Morgan Stanley (MS - Free Report) about a sale two years ago, the hosting company has been exploring a sale many times. The sources, however, cautioned that these latest talks may not result in a deal.
Apollo Global, who is based in New York City, has traditionally bought stakes in the communications, consumer, energy, healthcare, industrial, media, retail, and services industries, but has been trying to invest in the technology sector for some time now.
Rackspace has had trouble growing, as big tech giants like Microsoft Corp. (MSFT - Free Report) and IBM Corp. (IBM - Free Report) have made aggressive efforts in hosting and cloud services industry, but the company has made impressive gains in the business over the past two years.
The firm has taken other companies private this year, including ADT, a security services company, reports Reuters.
Shares of Apollo were also up on Friday, trading around 1.2% in the green as of 12:10 PM EST.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why is Rackspace (RAX) Soaring Almost 12% Today?
On Friday, shares of the world’s leading hosting company, Rackspace Hosting , are soaring, up almost 12% in midday trading after the company is apparently in talks with private equity firm Apollo Global Management (APO - Free Report) regarding a takeover offer.
According to Reuters, who cite people familiar with the matter, Apollo Global is reportedly negotiating a price over $3.5 billion to acquire Rackspace. Since it announced it was working with Morgan Stanley (MS - Free Report) about a sale two years ago, the hosting company has been exploring a sale many times. The sources, however, cautioned that these latest talks may not result in a deal.
Apollo Global, who is based in New York City, has traditionally bought stakes in the communications, consumer, energy, healthcare, industrial, media, retail, and services industries, but has been trying to invest in the technology sector for some time now.
Rackspace has had trouble growing, as big tech giants like Microsoft Corp. (MSFT - Free Report) and IBM Corp. (IBM - Free Report) have made aggressive efforts in hosting and cloud services industry, but the company has made impressive gains in the business over the past two years.
The firm has taken other companies private this year, including ADT, a security services company, reports Reuters.
Shares of Apollo were also up on Friday, trading around 1.2% in the green as of 12:10 PM EST.
RACKSPACE HOSTG Price and Consensus
RACKSPACE HOSTG Price and Consensus | RACKSPACE HOSTG Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>