Rackspace-Onica Deal: ‘Partners Benefit in Every Way’
… passion for providing a customer-obsessed experience.”
Rackspace and Onica expect the transaction to close later this quarter of 2019. Garden and Tolga Tarhan, Onica’s chief technology officer, will continue to lead the Onica team, reporting to Sid Nair, general manager of Americas at Rackspace.
Caulfield predicts Rackspace and Onica, whom he calls “both very good companies,” will ensure that the acquisition and subsequent operations integration all go smoothly.
“Obviously, each of their respective customers will need to be diligent in making sure none of the pending changes impact their ongoing agreements or operations but, again, I don’t believe this will be an issue for either of these providers,” he said.
Rackspace and Onica each are privately held, although rumor has it Rackspace soon will pursue an IPO. For now, Rackspace is owned by affiliates of certain funds of Apollo Global Management LLC and unnamed co-investors. Onica is a portfolio company of Sunstone Partners. According to Fortune magazine, Onica had raised approximately $20 million from investors including Sunstone Partners. Since 2017, when Sunstone first invested, Onica grew from 50 employees to more than 350, Sunstone said in a press release announcing the Rackspace deal.
Evercore acted as sole financial advisor to Rackspace on the transaction. Barclays acted as sole financial advisor to Onica.