Reuters reports that private equity firm Apollo Global Management Inc has registered Rackspace Holding Inc for an initial public offering (IPO) that could value the cloud services firm at more than $10 billion, including debt, according to "people familiar with the matter".
Sources say Rackspace has confidentially filed for an IPO with the U.S. Securities and Exchange Commission and is planning to proceed when pandemic volatility subsides, but that a date has not yet been set.
What's interesting to note is that pandemic-induced remote work has "breathed new life" into Rackspace’s business and brought an IPO within reach. Rackspace has apparently been exploring an IPO for the last two years, but its weak organic growth and large debt pile, accumulated as a result of its $4.3 leveraged buyout by Apollo in 2016 and subsequent acquisitions, had stopped it from pursuing it.
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