Apollo Global Management has agreed to acquire San Antonio, Texas-based Rackspace, a cloud platform provider for companies such as AWS and Microsoft, for $32 per share in cash.
The deal, which includes the assumption of $43 million in net cash, is valued at $4.3 billion.
Once the transaction closes, which is expected to be in the fourth quarter of this year, Rackspace will stop trading on the New York Stock Exchange and become private.
In addition to the acquisition, Searchlight Capital Partners LP will make an undisclosed investment in Rackspace.
Citigroup, Deutsche Bank, Barclays and Royal Bank of Canada are serving as financial advisers to Apollo and providing the financing for the acquisition. PSP Investments Credit USA LLC has also committed to funding a portion of it.
Goldman Sachs is acting as financial adviser to Rackspace.
Founded in 1998, Rackspace went public in 2008. For 2015, the company reported $2 billion in revenue.