Rackspace is buying one of its competitors in the managed cloud services business — Datapipe. In addition to providing managed services across public and private clouds, Datapipe also provides managed hosting and colocation. Rackspace said this is its largest acquisition to date, although the private company did not disclose the terms of the deal.
According to Crunchbase, Datapipe, which is based in New Jersey, has raised $311 million in funding.
Datapipe operates 29 data centers in nine countries. Many of these data centers are located in key markets where Rackspace has little or no presence today, including the West Coast of the U.S., Brazil, mainland China, and Russia. It also brings traditional colocation services across four continents to serve customers moving applications out of their corporate data centers.
Datapipe also brings big U.S. and U.K. government customers, including the U.S. Departments of Defense, Energy, and Treasury, and the U.K. Cabinet Office, Ministry of Justice, and Department of Transport. In addition, the company provides managed services on China’s Alibaba Cloud. Other enterprise customers include Johnson & Johnson, McDonalds, and Rubbermaid.
Founded in 2000, Datapipe employ 825 people. These will join Rackspace’s more than 6,000 employees.
“The combination of complementary capabilities and resources from both of our companies will create the world’s leading provider of multi-cloud managed services,” said Robb Allen, founder and CEO of Datapipe, in a statement.
The acquisition is expected to close before the end of 2017.
In May Rackspace announced its purchase of TriCore Solutions, a company that manages enterprise applications. At that time, Rackspace said the TriCore acquisition was its largest purchase to date.