SAN ANTONIO – Locally based Rackspace Hosting Inc. is being acquired by Apollo Global Management LLC of New York for $4.3 billion.
The deal, which will cash out all investors at $32 a share, represents a 38 percent premium to Rackspace’s closing price on Aug. 3, before a Wall Street Journal report about the potential sale boosted share prices. The stock has risen about 30 percent since the news about a potential sale.
The company surprised investors Aug. 8 when it reported better-than-expected profits, which surged 27 percent in the three months ending June 30. Rackspace earned $35.8 million, or 28 cents a share, in the second quarter. Rackspace was expected to earn 22 cents a share, according to the average estimate of 18 analysts polled by Bloomberg.
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