Thursday, November 23, 2017

Rackspace acquires ALL of Datapipe’s 29 data centres

Headquartered in Jersey City, NJ, Datapipe was founded in 2000 and employs today 825 staff servicing hundreds of customers across regions.

Multi-cloud managed services company Rackspace has entered into an agreement to acquire hybrid cloud and colocation provider Datapipe, including its infrastructure consisting of 29 data centres.

The acquisition, Rackspace’s largest to date, comes as customers requested for more multi-cloud capabilities, with industry surveys suggesting that the majority of businesses run their applications across three or more clouds.

Through the acquisition, expected to close in Q4 2017, Rackspace will gain customers including the US Departments of Defense, Energy, and Treasury, as well as the UK Cabinet Office, Ministry of Justice, and Department of Transport.

In addition, the company will also gain capabilities around professional services, software and tooling that will help serve enterprise customers as well as managed services on the Alibaba Cloud.

As for the data centre business, the fleet includes 29 sites, across the US (Chicago, Dallas, Kansas City, New York, San Jose, Sao Paulo, Seattle, Washington DC), Europe (Amsterdam, Frankfurt, London, Moscow) and Asia (Hong Kong, Shanghai, Singapore).

The acquisition of Datapipe will help Rackspace boost its offerings in regions where the company currently has a small footprint, including the West Coast of the US, Brazil, mainland China, and Russia.

Datapipe’s global data centre footprint. Source: Datapipe


Joe Eazor, CEO of Rackspace, said: “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.

“With the acquisition of Datapipe, we’re very pleased to expand the multi-cloud managed services we provide our customers, while also opening doors to new opportunities across the globe.”

Robb Allen, founder and CEO of Datapipe, said: “We are very proud of the business we have built and the innovations and successful customer outcomes we have been recognized for, and the future of Datapipe will be even brighter in combination with Rackspace.

“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 centres.

“The combination of complementary capabilities and resources from both of our companies will create the world’s leading provider of multi-cloud managed services.”

Both companies are privately held, with Rackspace owned by affiliates of certain funds of Apollo Global Management, LLC (NYSE: APO) and certain co-investors. The majority owner of Datapipe, Abry Partners, will receive equity in Rackspace.

Brian St. Jean, Partner at Abry, described this transaction as “a measure of our confidence in the bright future of Rackspace when combined with Datapipe.”

No additional terms or details of the transaction will be publicly disclosed.