Rackspace Technology, a leading cloud hosting services provider, filed on Friday with the SEC to raise up to $100 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $1 billion.
Acquired by Apollo Global Management in 2016, Rackspace designs, builds, and operates customers' cloud environments across all major technology platforms, irrespective of technology stack or deployment model. The company served over 120,000 customers across 120 countries in 2018 and 2019, including more than half of the Fortune 100.
The San Antonio, TX-based company was founded in 1998 and booked $2.5 billion in revenue for the 12 months ended March 31, 2020. It plans to list on the Nasdaq under the symbol RXT. Rackspace Technology filed confidentially on May 6, 2020. Goldman Sachs, Citi, J.P. Morgan, RBC Capital Markets, Evercore ISI, Barclays, BMO Capital Markets, Credit Suisse, Deutsche Bank, and HSBC are the joint bookrunners on the deal. No pricing terms were disclosed.
