M&A Deal Summary

Rackspace Acquires Datapipe

On September 11, 2017, Rackspace acquired information technology company Datapipe from ABRY Partners and American Capital

Acquisition Highlights
  • This is Rackspace’s 5th transaction in the Information Technology sector.
  • This is Rackspace’s 10th transaction in the United States.
  • This is Rackspace’s 1st transaction in New Jersey.

M&A Deal Summary
Date 2017-09-11
Target Datapipe
Sector Information Technology
Buyer(s) Rackspace
Sellers(s) ABRY Partners
American Capital
Deal Type Add-on Acquisition

Target

Datapipe

Jersey City, New Jersey, United States
Datapipe provides application management, hosting, professional services and security services for mid to large-sized organizations. Datapipe was formed in 1998 and is headquartered in Jersey City, New Jersey.

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Buyer(S) 1

Buyer

Rackspace

San Antonio, Texas, United States
Category Company
Founded 1998
Sector Information Technology
Employees5,800
Revenue 3.0B USD (2023)
DESCRIPTION
Entrance to Rackspace's corporate headquarters in San Antonio, Texas.
Entrance to Rackspace's corporate headquarters in San Antonio, Texas.

Rackspace is a provider of cloud computing services and managing hosting services for small and medium-sized businesses and large corporations. Rackspace was formed in 1998 and is based in San Antonio, Texas.

DEAL STATS #
Overall 10 of 13
Sector (Information Technology) 5 of 6
Type (Add-on Acquisition) 10 of 13
State (New Jersey) 1 of 1
Country (United States) 10 of 12
Year (2017) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-05-25 TriCore Solutions

Norwell, Massachusetts, United States

TriCore Solutions, the application management experts, provides a full suite of scalable and reliable managed application, cloud and infrastructure hosting, and consulting services to enterprise organizations. With 18 years of experience, the company delivers its services and the TriCore Trusted Promise to more than 275 enterprise-class companies worldwide to reduce costs, raise service levels, improve customer experience, increase business agility, and accelerate innovation, unlocking the business value from their IT investments. Our partners include industry leaders such as Oracle, SAP, Microsoft, AWS, and HP. TriCore Solutions is headquartered in Norwell, MA, with offices in India and throughout North America.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-05-17 RelationEdge

San Diego, California, United States

RelationEdge LLC is a full-service Salesforce Platinum Consulting Partner and digital agency that helps clients engage with their customers from lead to loyalty by improving business process, leveraging technology, and integrating creative digital marketing.

Buy -

Seller(S) 2

SELLER

ABRY Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1989
PE ASSETS 12.8B USD
Size Mega
Type Sector Focused
DESCRIPTION

ABRY Partners is a media and communications focused private equity investment firm. Specific areas of interest include television, publishing, convention/trade shows, for-profit training, couponing, monitoring services, telephone companies, communications towers, music libraries, database providers, wireless communications, and in-store advertisers. ABRY can provide both equity and mezzanine capital, typically committing $20 to $200 million of equity or $15 to $50 million of mezzanine capital per transaction. Prospective transaction situations include buyouts, expansion financings, platform acquisitions, consolidations, and recapitalizations. ABRY Partners was formed in 1989 and is headquartered in Boston, Massachusetts.

DEAL STATS #
Overall 71 of 102
Sector (Information Technology) 13 of 24
Type (Add-on Acquisition) 38 of 52
State (New Jersey) 8 of 9
Country (United States) 62 of 88
Year (2017) 9 of 11
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-11 RIMES

New York, New York, United States

RIMES is a provider of managed data services and regulatory solutions for the buy side. RIMES is a pioneer provider of cloud-based technology that delivers highly customized financial data over the Internet. RIMES was founded in 1996 and is based in New York City.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-09-29 Accela

San Ramon, California, United States

Accela provides a platform of cloud-based productivity and civic engagement software to governments of all sizes worldwide. The Accela Civic Platform includes cost-effective solutions to manage critical enterprise functions and mobile apps to foster greater citizen engagement. From asset, land, and legislative management to licensing, finance, environmental health, and more, its software drives efficiency for more than 2,000 governments worldwide. Accela was formed in 1999 and is based in San Ramon, California.

Sell -
SELLER

American Capital

Category Private Equity Firm
Founded 1997
PE ASSETS 22.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

American Capital was a publicly traded buyout and mezzanine investment firm. American Capital invested in buyouts, growth capital financings, acquistion financings, and recapitalizations. The Firm looked to finance businesses with at least $4 million in EBITDA and valued between $20 and $500 million. American Capital ws a generalist firm with broad interest in traditional industries such as manufacturing, distribution, and services. American Capital's European investment affiliate is European Capital. European Capital looked to invest $10 to $600 million of equity, mezzanine, and/or senior debt in similar opportunities across Europe. American Capital was formed in 1997 and in January 2017, merged with Ares Capital Management.

DEAL STATS #
Overall 184 of 194
Sector (Information Technology) 10 of 10
Type (Add-on Acquisition) 86 of 87
State (New Jersey) 6 of 6
Country (United States) 176 of 186
Year (2017) 4 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-16 SharkNinja

Needham, Massachusetts, United States

SharkNinja is a designer, marketer, and distributor of primarily branded home cleaning products. It offers over 50 different appliance products, including products for general cleaning, garment care, and kitchen use. The company markets its products under recognized brand names such as Shark, Euro-Pro, Fantom, Omega, and Bravetti, and maintains longstanding relationships with well-known retailers. SharkNinja was formed in 1994 and is based in Needham, Massachusetts.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-10-17 Tekni-Plex

Wayne, Pennsylvania, United States

Tekni-Plex is a globally-integrated company focused on developing and manufacturing innovative packaging materials, medical compounds and precision-crafted medical tubing solutions for some of the most well-known names in the medical, pharmaceutical, personal care, household and industrial, and food and beverage industries. Tekni-Plex was founded in 1967 and is based in Wayne, Pennsylvania.

Sell -
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