Managed cloud and hosting provider
Rackspace Hosting is to remain independent after stating that it is no longer actively seeking potential buyers or merger partners. Earlier this month telecommunications company CenturyLink, which has headquarters in Louisiana, USA, was linked to a purchase of Rackspace. The company specializes in landline phone services and was thought to be trying to extend the cloud services it offers through acquiring "the managed cloud company".
Rackspace has seen something of a change of fortune of late. The second quarter of 2014 saw a $20 million increase in its revenues, reaching a total of $411 million. The company, which designs, builds, and runs clouds, had never generated this level of revenue in a single quarter before. The growth was due to success in its Infrastructure-as-a-Service (IaaS) operations through adding two new managed cloud services options. However, Rackspace's statement on remaining independent saw a 16% drop in the company's shares in afterhours trading.
"After a comprehensive review, the board decided to terminate M&A discussions. Based on Rackspace’s reaccelerated revenue growth and its potential trajectory for the coming year, the board concluded the company is best positioned to maximize shareholder value by executing its strategy as the #1 managed cloud company," explained a press release from Rackspace."
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