Rackspace has sold its Cloud Sites business unit to Liquid Web, a $90 million web hosting and cloud services provider.
Liquid Web plans to invest in developing innovative solutions on the Cloud Sites platform to improve its hosting services.
The Cloud Sites business unit of Rackspace will remain in San Antonio.
Cloud Sites targets high-traffic websites. Customers of the Cloud Sites platform include designers, developers and digital agencies.
The Cloud Sites platform-as-a-service (PaaS) product significantly augments Liquid Web’s existing premium portfolio. The Cloud Sites platform supports WordPress, Drupal, Joomla, .NET, PHP, and other development and production environments.
Liquid Web just acquired Rackspace's Cloud Sites division https://t.co/y0PdcVjutX #lovelansing
— Rick_Mason (@Rick_Mason) August 9, 2016
“With the addition of Cloud Sites, we further our mission to empower web professionals all over the world to create content and commerce without worry, free of problems and devoid of even one bit of hesitation by providing absolutely flawless web hosting,” said Liquid Web CEO Jim Geiger.
The acquisition of Cloud Sites will enable Liquid Web to expand its employee base to 550 and 30,000 customers globally.
Matt Bradley, vice president, corporate development and strategy, at Rackspace, said: “Through the transaction, we are also pleased to welcome Liquid Web to the Rackspace Partner Network as an email reseller.”
Meanwhile, Rackspace announced revenue of $524 million (+7 percent) in the quarter ended June 30, 2016. Rackspace said its revenue was adversely affected by shifts in currency exchange rates and the sale of its Jungle Disk business. Net income of Rackspace increased 5.8 percent to $36 million.
Taylor Rhodes, president and CEO of Rackspace, said the cloud company serves 600 customers on platforms such as AWS, the Microsoft Cloud, and our OpenStack private cloud.
