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Rackspace Buys TriCore Solutions to Add Enterprise App Management Capabilities

  • Written by Edward Gately
  • May 26, 2017
Rackspace is acquiring TriCore Solutions, a company that offers management of enterprise applications, including enterprise resource planning (ERP) offerings from Oracle and SAP.

Rackspace is acquiring TriCore Solutions, a company that offers management of enterprise applications, including enterprise resource planning (ERP) offerings from Oracle and SAP.

The acquisition, the largest in Rackspace’s history, is expected to close in June. It will allow Rackspace to provide expertise and support for enterprise applications that companies use to manage core functions such as manufacturing, logistics, procurement, supply chain management, customer service, HR and financial operations.

“Our customers are asking us to move further ‘up the stack’ by expanding our managed application capabilities,” said Jeff Cotten, Rackspace’s president and interim CEO. “TriCore’s services are among the best in that space and are highly complementary to ours. They will help enable us to deliver more of the services that our existing customers need, while opening the door to new opportunities across the globe.”

TriCore delivers its services on infrastructure in any location the customer chooses: the customer’s data center, a TriCore data center, a colocation facility or a data center run by a hyperscale cloud provider such as Amazon Web Services or Microsoft Azure. TriCore currently serves about 275 managed service customers across a wide range of industries.

“TriCore and Rackspace are a great fit in terms of our cultures and we offer complementary services,” said Mark Clayman, TriCore’s CEO. “We’ve worked for 18 years to develop our delivery expertise, create value for customers and win their trust and loyalty. We are extremely excited to join the Rackspace team and leverage its brand and industry reach to continue to expand our offerings.”

Clayman and other key members of the TriCore management team will join Rackspace as part of the acquisition.

According to industry analysts, companies spend about $3 billion per year on ERP, business intelligence and analytics, and database managed services. The hosted segments of these markets, which is where TriCore is focused, are expected to grow at double digits per year going forward, according to Rackspace.

Tags: Agents Cloud Data Centers Mergers and Acquisitions

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