SAN FRANCISCO May 15 Cloud services provider
Rackspace Hosting Inc said it has hired Morgan Stanley
to evaluate strategic options such as an acquisition of the
company, triggering a late-session surge of more than 7 percent
in its share price.
Rackspace, which leases server space and helps corporations
store and access data in the cloud, has struggled to grow in the
face of competition from aggressive startups as well as
established players like Microsoft Corp and IBM
"In recent months, Rackspace has been approached by multiple
parties who have expressed interest in a strategic relationship
with Rackspace, ranging from partnership to acquisition," the
company said in a statement on Thursday.
"Our board decided to hire Morgan Stanley to evaluate the
inbound strategic proposals, and to explore any other
alternatives which could advance Rackspace's long-term
Rackspace stock, which has slid more than 20 percent this
year, closed 7.1 percent higher at $30.68 on the New York Stock
Exchange. The news was first reported by Bloomberg.
(Reporting by San Francisco Newsroom; editing by Matthew Lewis)