Summary
- Rackspace Technology has filed for a U.S. IPO.
- The firm provides enterprises of all sizes with computing infrastructure, software and security services.
- RXT is private equity-owned and has a significant debt load.
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Quick Take
Rackspace Technology (RXT) has filed to raise $100 million in an IPO of its common stock, according to an S-1 registration statement.
The firm provides a range of multicloud services, security and data services.
RXT is pursuing a large market with favorable industry dynamics but is debt-heavy from its private equity buyout a few years ago.
I’ll provide an update when we learn more about the IPO.
Company & Technology
San Antonio, Texas-based Rackspace was founded to provide infrastructure solutions to enterprises.
Since its take-private acquisition by private equity firm Apollo Capital Management in 2016, the firm has transitioned to a cloud agnostic services focus on recurring revenue.
Management is headed by Chief Executive Officer Kevin Jones, who has been with the firm since April 2019 and was previously SVP and General Manager of Americas at DXC Technology Company, an IT services firm.
Below is a brief overview video of Rackspace's approach:
