Wednesday, September 17, 2014

Rackspace Names New CEO, Drops Company Sale Evaluation

Rackspace formally ended its evaluation process under which it was looking for a potential acquirer of the company. In doing so, the company declared its commitment to remain an independent provider of managed cloud services.

Rackspace also announced the appointment of Taylor Rhodes as CEO to lead and drive its managed cloud strategy. Rhodes is a Rackspace veteran who has served in a variety of leadership positions within the company since 2007, including several roles directly responsible for delivering Rackspace’s renowned Fanatical Support® to customers globally. He retains his previous role as president.

Rackspace co-founder, Graham Weston, who has served as CEO and chairman since February, now is non-executive chairman of the board.

“We ran a thorough process under the direction of our board of directors, independent advisors, and a Strategic Transaction Committee of the Board,” said Graham Weston, Rackspace co-founder and chairman. “In this process we talked to a diverse group of interested parties and entertained different proposals. None of these proposals were deemed to have as much value as the expected value of our standalone plan. We concluded that the company is best positioned to drive value for shareholders, customers and Rackers through the continued execution of its strategic plan to capitalize on the growing market opportunity for managed cloud services.”

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