Managed cloud mega-merger as Rackspace acquires Datapipe

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Managed cloud mega-merger as Rackspace acquires Datapipe

Rackspace has announced the biggest deal in its history with the acquisition of managed cloud services provider Datapipe.

The acquisition, which is expected to be finalised in the fourth quarter of this year, aims to grow each company's customer base and bolster their respective portfolios.

“Our customers are looking for help as they spread their applications across public and private clouds, managed hosting, and colocation, depending on the blend of performance, agility, control, security, and cost-efficiency they’re looking for,” Rackspace CEO Joe Eazor said.

Datapipe, which has 825 employees and 29 data centres in nine countries, is expected to bring Rackspace high-profile public sector customers in the US and the UK. It will also bring traditional colocation services, professional services and managed services on the Alibaba Cloud.

Meanwhile, Rackspace will provide current Datapipe customers with additional services involving Microsoft and VMware private clouds, a managed Google Cloud platform and managed services for enterprise applications – particularly those in the Oracle and SAP ecosystems as well as those used in digital marketing and e-commerce.

“Customers need guidance using public cloud infrastructure from Alibaba Cloud, Amazon Web Services, Google Cloud Platform and Microsoft Azure,” said Datapipe CEO Robb Allen.

“They need help navigating the use of private clouds, managed hosting and colocation solutions, often in combination, as they move critical applications out of their corporate data centers.”

Datapipe’s majority owner, Abry Partners, will become an equity investor in Rackspace, who is owned by Apollo Global Management and its partners. Rackspace was advised by Citi while Datapipe had Barclays and DH Capital as its financial advisers.

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