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SAN ANTONIO, TX – Rackspace® today announced that it signed an agreement to acquire Datapipe, one of the world’s leading providers of managed services across public and private clouds, managed hosting and colocation. This acquisition, the largest in Rackspace history, brings important new capabilities to Rackspace and will enable the company to better serve customers of all kinds, globally and at scale.

According to industry surveys, the vast majority of companies operate across three or more clouds today, and will do so for years to come1. Customers have been asking Rackspace to rapidly expand its abilities in managing multiple clouds at scale, and with the acquisition of Datapipe, Rackspace will be able to meet this growing demand.


Among the new capabilities that Datapipe will bring to Rackspace are:

  • Experience serving high-profile public sector customers, including the U.S. Departments of Defense, Energy, and Treasury, as well as the U.K. Cabinet Office, Ministry of Justice, and Department of Transport
  • Professional services, software and tooling that will help better serve enterprise customers
  • Data centers and offices in key markets where Rackspace today has little or no presence, including the West Coast of the U.S., Brazil, mainland China, and Russia
  • Traditional colocation services across four continents, to reduce cost and risk for customers moving applications out of their corporate data centers
  • Managed services on the Alibaba Cloud (the largest in China)

By the same token, Rackspace brings new capabilities to Datapipe customers, including:

  • Deep experience in Microsoft, VMware, and OpenStack private clouds, including new service offerings for Azure Stack and VMware Cloud on AWS
    Managed Google Cloud Platform
  • Managed services for enterprise applications, including those in the Oracle and SAP ecosystems, and those used in digital marketing and ecommerce

“Our customers are looking for help as they spread their applications across public and private clouds, managed hosting, and colocation, depending on the blend of performance, agility, control, security, and cost-efficiency they’re seeking,” said Joe Eazor, CEO of Rackspace. “With the acquisition of Datapipe, we’re very pleased to expand the multi-cloud managed services we provide our customers, while also opening doors to new opportunities across the globe.”

Founded in 2000, Datapipe is a pioneer in managed public cloud services. It is a growing and profitable business, based in Jersey City, N.J., with 825 employees and 29 data centers in nine countries. Datapipe serves the complex needs of many large enterprises, including Johnson & Johnson, McDonalds and Rubbermaid.

“We are very proud of the business we have built and the innovations and successful customer outcomes we have been recognized for, and the future of Datapipe will be even brighter in combination with Rackspace,” said Robb Allen, founder and CEO of Datapipe. “Customers need guidance using public cloud infrastructure from Alibaba Cloud, Amazon Web Services, Google Cloud Platform, and Microsoft Azure. They also need help navigating the use of private clouds, managed hosting and colocation solutions, often in combination, as they move critical applications out of their corporate data centers. The combination of complementary capabilities and resources from both of our companies will create the world’s leading provider of multi-cloud managed services.”

Rackspace and Datapipe are remarkably similar. Both companies have been positioned as leaders in the Gartner Magic Quadrant assessments of providers of managed cloud services, and in industry rankings by Forrester and other leading analyst firms. Both companies are known for their technical expertise and managed services across multiple clouds, exceptional customer service, profitable growth, and engaged workplace cultures. Rackspace intends to build on the industry leadership the two companies have established in reliability and support, to create a new level of end-to-end customer experience.

Pending regulatory approvals, Rackspace’s acquisition of Datapipe is expected to close in Q4 2017. Rackspace will develop a comprehensive integration plan and will take great care to maintain and enhance the exceptional customer outcomes that both companies are known for. Rackspace looks forward to welcoming the talented employees from Datapipe.

Both companies are privately held, with Rackspace owned by affiliates of certain funds of Apollo Global Management, LLC and certain co-investors. The majority owner of Datapipe, Abry Partners, will receive equity in Rackspace. Brian St. Jean, Partner at Abry, described this transaction as “a measure of our confidence in the bright future of Rackspace when combined with Datapipe.” No additional terms or details of the transaction will be publicly disclosed.

Citigroup is acting as sole financial advisor to Rackspace in the transaction and has committed to provide incremental Senior Secured Credit Facilities, which will be used in part to refinance Datapipe’s existing indebtedness and pay related fees and expenses. Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor to Rackspace.

Barclays and DH Capital are acting as financial advisors in the transaction to Datapipe. DLA Piper LLP is acting as legal advisor to Datapipe.

About Rackspace
Rackspace, the leading multi-cloud managed services company, helps businesses tap the power of cloud computing without the complexity and cost of managing it all on their own. Rackspace engineers deliver specialized expertise, easy-to-use tools, and Fanatical Support® for leading technologies including AWS, Google, Microsoft, OpenStack, Oracle, SAP and VMware. The company serves customers in 150 countries, including more than half of the FORTUNE 100. Rackspace was named a leader in the 2017 Gartner Magic Quadrant for Public Cloud Infrastructure Managed Service Providers, Worldwide and has been honored by Fortune, Forbes, and others as one of the best companies to work for. Learn more at www.rackspace.com.

About Datapipe
A next generation MSP, Datapipe is recognized as the pioneer of managed services for public cloud platforms. Datapipe has unique expertise in architecting, migrating, managing and securing public cloud, private cloud, hybrid IT and traditional IT. The world’s most trusted brands partner with Datapipe to optimize mission-critical and day-to-day enterprise IT operations, enabling them to transform, innovate, and scale. Backed by a global team of experienced professionals and world-class interconnected data centers, Datapipe provides comprehensive cloud, compliance, security, governance, automation and DevOps solutions. Gartner named Datapipe a leader in the 2017 Gartner Magic Quadrant for Public Cloud Infrastructure Managed Service Providers, Worldwide.

1 Bain IT Decision Maker Survey, May 2017

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REDWOOD CITY, CA – Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced that it has entered into an agreement with The Carlyle Group for the purchase of Itconic, a leading data center, connectivity and cloud infrastructure solutions provider in Spain and Portugal, and CloudMas, an Itconic subsidiary that is focused on supporting enterprise adoption and use of cloud services. Itconic generated approximately €55.5M or approximately $66.8M U.S. dollars of revenues for the period Q2 2017 annualized. Equinix will purchase the companies in an all-cash transaction totaling €215M or approximately $259M U.S. dollars. The agreement was signed on September 8, 2017, and the acquisition is expected to close in Q4 2017, subject to customary closing conditions including regulatory approval.

The acquisition of Itconic will further strengthen Equinix’s position in Europe and will extend its footprint into two new countries within the region. The acquisition will include five data centers in four metros, with two located in Madrid, one in Barcelona, one in Seville, and one in Lisbon, and adds approximately 322,000 gross square feet to the Equinix International Business Exchange™ (IBX®) data center portfolio. In addition, the CloudMas business brings a highly experienced team of technology professionals with deep expertise in hybrid cloud architectures and cloud adoption and migration strategies.

  • Spain is the world’s fourteenth-largest economy, the sixth-largest in Europe. The acquisition of Itconic further extends Equinix’s ability to provide businesses with the direct and secure connectivity they need to expand their global reach in new and existing markets. According to the Global Interconnection Index, Interconnection is becoming an essential building block of the digital economy. By providing additional capacity in key markets, Equinix continues to play an important role in helping companies to extend their IT operations to the digital edge through the interconnection of people, locations, clouds and data.
  • As a result of the acquisition, Equinix will serve more than 400 customers in Iberia, including marquis enterprise brands such as L’Oreal, Vueling, Deloitte, BNP Paribas, Repsol, Real Madrid, Randstad, Carlson Wagonlit Travel, Aon and Bank of America. In addition, more than 100 network and mobility companies and more than 90 cloud and IT services companies operate at Itconic, including AWS, Microsoft Azure and Google Cloud. This further strengthens the business ecosystems found inside of Equinix IBX data centers and provides customers with the broadest choice of service providers for IT and multicloud deployments to accelerate business performance.
  • The Itconic acquisition will position Equinix to support growth in traffic between Europe, Latin America and Africa driven by new submarine cable systems, which will enable accelerated traffic globalization and data consumption, and rapid growth of cloud and online services. Some of the submarine cables already connected to Itconic’s Lisbon data center are ACE (African Coast to Europe), WACS (West Africa Cable System), Tata Global Network. The MainOne cable will be connected in the future. In addition, the data center in Seville is connected to Canalink.
  • The acquisitions will add more than 250 employees to the Equinix team in Europe. Many members of the CloudMas team have earned certifications for deployment and support of services on leading cloud platforms.
  • Bank Street served as Equinix’s financial advisor, and Uria Menendez acted as Equinix’s external legal advisors in connection with this transaction.
  • Equinix currently operates more than 180 IBX data centers in 44 markets, providing customers even more ways to connect with other businesses around the world on Platform Equinix™.

About Equinix
Equinix, Inc. (NASDAQ: EQIX) connects the world’s leading businesses to their customers, employees and partners inside the most interconnected data centers. In 44 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies. www.equinix.com.

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(Bloomberg) — U.S. prosecutors prevailed in their request to seek information about subscribers to an anti-Trump website allegedly linked to rioting during the presidential inauguration in Washington, D.C.
A judge in District of Columbia Superior Court on Thursday ordered DreamHost LLC, the host of the website disruptj20.org, to comply with a government warrant seeking information about the site's subscribers. The government says the site was used to recruit and organize hundreds of people who rioted in the city on Jan. 20, the day President Donald Trump was sworn in, causing hundreds of thousands of dollars in damage over nearly two dozen city blocks.
DreamHost Launches Crowdfunding Campaign to Cover Legal Costs in DOJ Fight
Chief Judge Robert Morin ruled that DreamHost was obligated to turn over subscriber data, but that prosecutors would have to tell the judge which data it intended to seize. The judge said he would oversee the use of the data to make sure the government's seizure was limited to individuals linked to the riots and not people who merely posted messages or communicated with others through the site.
"I'm trying to balance the First Amendment protections and the government's need for this information," Morin said. "My view here is that this best protects both legitimate interests."
Morin denied DreamHost's request to put his ruling on hold until they could appeal his decision.
Host's Refusal
The ruling on Thursday came after
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DreamHost has set up a crowdfunding campaign to raise $10,000 for its legal fight against the U.S. Department of Justice.
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