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Rackspace Agreed to Acquire Datapipe—Here’s What Happened

Rackspace’s acquisition target was Datapipe, a managed cloud, hosting and colocation provider. The deal closed on November 16, 2017, and Rackspace did not disclose the purchase price in its official announcements.
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Rackspace agreed to acquire Datapipe, a managed services provider offering public- and private-cloud services, managed hosting and colocation. Rackspace announced the agreement in 2017 and reported that it completed the acquisition on November 16, 2017.

Which company did Rackspace agree to acquire?

The target was Datapipe. Rackspace described Datapipe as a provider spanning managed public and private clouds, managed hosting and colocation. The agreement announcement called it the largest acquisition in Rackspace’s history at that time, but the official announcements did not disclose a purchase price or other financial terms.

Rackspace’s original announcement is available in its newsroom: Rackspace Announces Agreement to Acquire Datapipe.

When did the Datapipe acquisition happen?

Date Event
September 11, 2017 Rackspace announced its agreement to acquire Datapipe.
November 16, 2017 Rackspace announced that it had completed the transaction.

The completion announcement said a planned integration would begin immediately. That statement described an intended process, not a later assessment of service quality or integration results.

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Why did Rackspace buy Datapipe?

Rackspace said the transaction would broaden its managed infrastructure capabilities and global reach. In particular, the company said Datapipe expanded its managed hosting and private-cloud capabilities and strengthened its position as a managed public-cloud provider across AWS, Microsoft Azure, Google Cloud Platform and Alibaba Cloud.

Those points were Rackspace’s stated rationale rather than an independent measurement of market share or customer outcomes. Rackspace CEO Joe Eazor summarized the company’s position: “Datapipe brings important new capabilities to Rackspace that will enable us to better serve customers, globally and at scale.”

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What changed in Rackspace’s announced organization?

Rackspace said three Datapipe leaders would join its executive leadership:

  • Joel Friedman: technology leadership.
  • Dan Newton: account management and service delivery.
  • Dan Tudahl: government solutions.

Rackspace also said the integration would be staged and designed to maintain and enhance customer support. The announcement records those appointments and plans; it does not establish how the integration ultimately performed.

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Was the acquisition price disclosed?

No. The Rackspace agreement and completion announcements used here do not state a dollar value, financing structure or other purchase-price terms. Figures for the deal’s value, data-center footprint, customer count or market share should not be inferred from those releases.

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Did Rackspace complete the deal?

Yes. Rackspace’s November 16, 2017 announcement confirmed completion of the Datapipe acquisition. See the official notice: Rackspace Announces Completion of Datapipe Acquisition.

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The two announcements do not, by themselves, establish Datapipe’s present-day standalone brand, corporate structure or service availability. They document the 2017 agreement, the November 2017 close and Rackspace’s expectations for the integration.

The Bottom Line

Rackspace’s 2017 acquisition target was Datapipe, a managed hosting, cloud and colocation provider. Rackspace completed the transaction on November 16, 2017; its official announcements described the deal as its largest at the time but did not disclose the purchase price.

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