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Rackspace decides to stay independent, under new CEO

2014-09-17 09:24:00| Telecompaper Headlines

(Telecompaper) Rackspace announced that it has has ended its evaluation of alternatives to being acquired, and that it has chosen to remain independent, under a new CEO. Taylor Rhodes will take up his new position with immediate effect, and also sit on the company's board. The new CEO has been at the company since 2007, serving in a number of roles. Rackspace co-founder Graham Weston, who has served as CEO and chairman since February, will now become non-executive chairman of the board. Rhodes will now lead and drive the company's cloud strategy. Rackspace said it had been approached by different parties, who expressed interest in exploring a strategic relationship, ranging from partnership to acquisition. After a comprehensive review, the board decided to terminate all merger and acquisition (M&A) discussions. Based on Rackspace's reaccelerated revenue growth and its potential trajectory for the coming year, the board concluded the company is best positioned to maximize shareholder value by executing its strategy as the number 1 managed cloud company.The board also considered a share repurchase programme.

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