Cloud hosting provider Rackspace to acquire TriCore Solutions
East Coast information technology services provider TriCore Solutions is to be acquired by local cloud hosting provider Rackspace in a deal that will see TriCore's CEO, Mark Clayman, join the San Antonio outfit.
"TriCore and Rackspace are a great fit in terms of our cultures and we offer complementary services," said Clayman. "We are extremely excited to join the Rackspace team and leverage its brand and industry reach to continue to expand our offerings."
Rackspace had been busy snapping up other cloud startups prior to 2013, but this has been described as their largest ever acquisition and will enable the company to expand beyond just cloud hosting. The hope is to make inroads into providing support for supply chain management, procurement and manufacturing - all of which they feel this deal can provide.
It appears the two companies will continue to work independently of one another, only coming together for cross-sales opportunities and to enable Rackspace to make moves in a new industry in which they won't compete with the likes of Google and Apple.
TriCore is an industry leader in Enterprise Resource Planning from Oracle and SAP, as well as business intelligence and analytics, and database managed services - industries that market analysts estimate companies spend around $3bn a year on.
Jeff Cotten, president and interim CEO of Rackspace, was highly complimentary of their new partners. "TriCore’s services are among the best in that space and are highly complementary to ours. They will help enable us to deliver more of the services that our existing customers need, while opening the door to new opportunities across the globe."
With around 160 of its 513 employees based in Norwell, Massachusetts, it has been confirmed that TriCore will continue to operate in the same locations it does today.
The deal is expected to be finalised in June, whilst a fee has not been disclosed as of yet.