Summary
- Rackspace Technology has filed to raise $754 million in a U.S. IPO.
- The firm provides enterprises of all sizes with computing infrastructure and related software consulting services.
- RXT's revenue trajectory has been uneven, the IPO appears pricey and the company will still have significant debt post-IPO, so I'll watch the IPO from the sidelines.
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Quick Take
Rackspace Technology (RXT) has filed to raise $754 million from the sale of its common stock in an IPO, according to an amended registration statement.
The company provides a range computing infrastructure and software consulting services to enterprises of all sizes worldwide.
RXT’s IPO is not cheaply priced, the firm still has a significant debt load post-IPO and an uneven recent revenue growth trajectory, so I'll watch this IPO from the sidelines.
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:
