Rackspace is set to acquire Datapipe, a provider of managed services across public and private clouds, managed hosting and colocation.
This will be the latest acquisition in the history of Rackspace.
The acquisition of Jersey City, N.J.-based Datapipe will enhance Rackspace’s capabilities in serving big public sector customers, including the U.S. Departments of Defense, Energy, and Treasury, as well as the U.K. Cabinet Office, Ministry of Justice, and Department of Transport.
Affiliates of certain funds of Apollo Global Management and certain co-investors own Rackspace. Abry Partners, the majority owner of Datapipe, will receive equity in Rackspace.
Rackspace will have data centers and offices in markets where Rackspace has little or no presence, including the West Coast of the U.S., Brazil, mainland China, and Russia.
Rackspace will have traditional colocation services across four continents, to reduce cost and risk for customers moving applications out of their corporate data centers.
Rackspace brings capabilities to Datapipe customers, including experience in Microsoft, VMware, and OpenStack private clouds, including new service offerings for Azure Stack and VMware Cloud on AWS.
“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 seeking,” said Joe Eazor, CEO of Rackspace.
Founded in 2000, Datapipe has 825 employees and 29 data centers in 9 countries. Datapipe serves many large enterprises, including Johnson & Johnson, McDonalds and Rubbermaid. Robb Allen is the founder and CEO of Datapipe.
“Customers need guidance using public cloud infrastructure from Alibaba Cloud, Amazon Web Services, Google Cloud Platform, and Microsoft Azure. They also 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,” said Robb Allen is the founder and CEO of Datapipe.