Rackspace Acquires Managed Cloud Firm TriCore Solutions
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Rackspace has reached a deal to acquire consulting and managed cloud services company TriCore Solutions, adding its enterprise application management expertise and support, according to a Thursday announcement. Financial details of the deal, which is expected to close in June, were not disclosed.
TriCore provides management of Oracle and SAP Enterprise Resource Planning (ERP) products, as well as business intelligence and analytics, data warehousing and integration services. These mission-critical applications manage core business functions, but are complex and expensive to run, according to the announcement, which leads companies to seek help managing and optimizing them.
“Our customers are asking us to move further ‘up the stack’ by expanding our managed application capabilities,” Jeff Cotten, Rackspace president said in a statement. “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.”
Last week Rackspace announced the launch of a new Application Operations service to help customers optimize their websites and applications, including applications from Oracle and SAP.
The transaction is the first acquisition Rackspace has made since announcing on Wednesday that its new CEO Joe Eazor will start on June 12.
TriCore's executives and over 500 employees will join Rackspace as part of the acquisition, and continue to work out of the same locations. Rackspace says the culture of TriCore, which was founded in 1999, is similar to its own, and that TriCore serves about 275 customers.
“TriCore and Rackspace are a great fit in terms of our cultures and we offer complementary services,” said TriCore CEO Mark Clayman. “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.”