On Cloud Nine
San Antonio tech giant racks up major company milestone
Rackspace Technology Inc., arguably the highest-profile tech company in San Antonio, is on the verge of becoming one of the city's biggest publicly traded companies.
On July 10, cloud technology specialist Rackspace filed paperwork with the U.S. Securities and Exchange Commission indicating it plans a stock offering of up to $100 million through Nasdaq. The number of shares to be sold, the per-share stock price, and the date of the offering haven’t been set, Rackspace says. The company’s stock would trade under the symbol RXT.
This won’t be Rackspace’s first go-round as a publicly traded company. In August 2008, Rackspace went public in a $187.5 million IPO on the New York Stock Exchange. But six years later, the company went private in a $4.3 billion buyout by New York City-based investment firm Apollo Global Management LLC.
If the latest stock offering proceeds as planned, Rackspace would become the fifth-largest publicly traded company in the San Antonio area based on revenue, as well as the region’s largest publicly traded tech company. Rackspace generated revenue of $2.44 billion last year. With annual revenue exceeding $108 billion, Valero Energy Corp. holds the No. 1 spot among local public companies, followed by Rush Enterprises Inc., Clear Channel Outdoor Holdings Inc., and iHeartMedia Inc., according to San Antonio Business Journal research.
Rackspace employs about 6,800 people in 15 countries. About 2,100 employees work from its corporate headquarters at a 1.2 million-square-foot office campus on 67 acres in Windcrest. Since early March, nearly all of Rackspace’s employees have worked remotely due to the pandemic. Across North America, Rackspace employs about 4,400 “Rackers,” as its employees are known.
“We have a culture of innovation that permeates all that we do,” Rackspace says in its SEC filing. “Our Rackers gather insights from customers, cloud partners, and each other to design, implement, and operate some of the most advanced cloud environments.”
Rackspace has gone through several big changes in the past year or so. In June, the company changed its name from Rackspace Corp. to Rackspace Technology. In April 2019, the company brought aboard a new CEO, Kevin Jones. Three months later, Rackspace added Dustin Semach as chief financial officer and Subroto Mukerji as chief operating officer.
“Our technical acumen with the world’s leading cloud technologies — across apps, data, and security — empowers our customers to build new revenue streams, increase efficiency, and create incredible experiences,” Jones said in a June 8 release. “Our new name, mission, and multicloud solutions better represent the full value we bring to market. Our mission is simple. Embrace technology. Empower customers. Deliver the future.”