Rackspace today announced it’s buying TriCore Solutions, a company that manages enterprise applications, including enterprise resource planning (ERP) software from Oracle and SAP. The acquisition will be the largest in Rackspace history, although terms of the purchase of the private company were not disclosed. The deal is expected to close in June.

According to Rackspace, its enterprise and mid-market customers have been asking for the kinds of application management capabilities that TriCore offers. The acquisition continues Rackspace's evolution. The company has been expanding from its roots, which focused on building OpenStack private clouds. It now offers managed services through public, private, or hybrid clouds.

TriCore, which was founded in 1999, employs about 500 people. About 150 of those workers reside in the U.S. and the rest are in India. Its CEO Mark Clayman, along with its workforce, will join Rackspace as part of the acquisition. About 90 percent of the TriCore workforce does customer service. The company has nearly 275 managed service customers across a wide range of industries.

New Rackspace CEO

The TriCore announcement follows on the heels of a corporate blog posting yesterday, naming Joe Eazor as the new CEO of Rackspace, effective June 12. Eazor most recently served as CEO of EarthLink. In February, he led the sale of EarthLink to Windstream for $1.1 billion.

Jeff Cotten, who has been serving as interim CEO of Rackspace, will continue as president of the company.

The cloud company has experienced some turmoil during the past year. In late 2016 it was acquired by Apollo Global Management for $4.3 billion, becoming a privately held company.

In February Rackspace announced layoffs that would affect about 6 percent of its U.S. workforce.

In April Intel pulled funding for the OpenStack Innovation Center (OSIC), which it co-founded with Rackspace in 2015. The funding cut forced Rackspace to eliminate 45 jobs associated with OSIC.

And earlier this month, Rackspace CEO Taylor Rhodes left the company to become CEO of a smaller private company that doesn’t compete with Rackspace.

Photo of Joe Eazor, the newly named CEO of Rackspace.