Telecommunications company CenturyLink is trying to acquire managed cloud company
Rackspace Hosting. The company, which has headquarters in Louisiana, USA, specializes in landline phone services and aims to extend the cloud services it offers by acquiring Rackspace.
Currently led by co-founder and chairman, Graham Weston, Rackspace has headquarters in San Antonio, Texas, USA. It offers a range of services alongside managed cloud options. These include DevOps, migration services, security and compliance services, managed security and email services. The company's current stock-market value is $5.33 billion. However, its share value has halved since the beginning of 2013.
CenturyLink's interest comes in the wake of its recent acquisition of cloud company Tier 3 Inc. Should it purchase Rackspace it would be able to compete with larger Internet and cloud players. However, if the company finances a deal for Rackspace, it might incur a debt downgrade. As a result, a deal might be dependent on Rackspace accepting stock as payment, reducing the likelihood of a deal going through.
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