Rackspace Rises After Report It’s Close to Being Sold to PE FirmBy
Rackspace Hosting Inc. soared the most in more than two years after the Wall Street Journal said it was near a deal to be sold to a private-equity firm.
The reported talks come two years after the provider of cloud-computing services said it had hired banks to explore strategic options as it struggled to compete in an increasingly competitive market.
San Antonio-based Rackspace is in advanced talks with one or more private-equity firms, and a deal could be reached as soon as this week, the Journal reported, citing people familiar with the matter.
Rackspace couldn’t immediately be reached for comment.
The stock surged 15 percent to $26.55, its biggest jump since May 2014. That brought its gains for this year to 4.9 percent.