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Rackspace to Acquire Onica, a Cloud-Native Consulting and Managed Services Company

November 4, 2019

Acquisition Brings Innovative Professional Services Expertise to Rackspace, Including Application and Infrastructure Modernization, Serverless Development, Containers and the Internet of Things

SAN ANTONIO – Rackspace today announced that it has agreed to acquire Onica, an Amazon Web Services (AWS) Partner Network (APN) Premier Consulting Partner and AWS Managed Service Provider. This acquisition brings Onica’s innovative professional services capabilities – including strategic advisory, architecture and engineering and application development – to the Rackspace portfolio, complementing its existing managed cloud services capabilities. Terms of the transaction were not disclosed.

Founded in 2014 and headquartered in Santa Monica, California, Onica has rapidly grown to more than 350 highly-skilled consultants across North America. The company holds nine AWS competencies across Data and Analytics, DevOps, Education, Healthcare, Industrial Software, IoT, Microsoft Workloads, Migration and Storage. Onica has been a regular on Inc. Magazine’s Best Workplaces list and ranked fifth on the CRN® Fast Growth 150 list. As a cloud-native services company, Onica helps customers build new revenue streams, increase efficiency and deliver incredible experiences by bringing the innovative capabilities of the cloud to some of the most complex technology projects in the world.

“As a cloud pioneer, Onica has established itself as one of the largest pure-play AWS consultancies, with an unmatched reputation for true capability leadership with AWS and customers,” said Kevin Jones, CEO of Rackspace. “This acquisition will strengthen our ability to meet all of our customer needs on AWS, and together, we will have the most complete set of professional services and managed service capabilities in the industry. Rackspace is known for providing Fanatical Experience™ to its customers and Onica’s customer-first mindset is a natural culture fit. We are thrilled to welcome Stephen, Tolga and the talented Onica team to the Racker family.”

The demand for professional services for public cloud is rapidly growing and customers are continuing to adopt advanced cloud solutions. The acquisition of Onica will enhance and extend Rackspace’s offering to customers who are quickly maturing on AWS and seeking high-end professional services spanning the full spectrum of expertise in the cloud.

“By combining our capabilities with Rackspace’s global presence, resources and scale, we will be better positioned to achieve our mission of helping customers innovate using AWS,” said Stephen Garden, CEO of Onica. “We pride ourselves on delivering results for customers, and in Rackspace we have found a partner that shares our passion for providing a customer-obsessed experience.”

The transaction is expected to close in late fourth quarter of 2019. Garden and Onica Chief Technology Officer Tolga Tarhan will continue to lead the Onica team, reporting to Sid Nair, General Manager of Americas at Rackspace.

Both companies are privately held, with Rackspace owned by affiliates of certain funds of Apollo Global Management, LLC and certain co-investors. Onica is a portfolio company of Sunstone Partners.

Evercore acted as sole financial advisor to Rackspace on the transaction. Barclays acted as sole financial advisor to Onica.

About Onica

Onica is a cloud consulting and managed services company, helping businesses enable, operate, and innovate on the cloud. From migration strategy to operational excellence, cloud-native development, and immersive transformation, Onica is a full spectrum integrator, helping hundreds of companies realize the value, efficiency, and productivity of the cloud. Learn more at www.onica.com.

Media Contacts

Rackspace:

Starr Million Baker

INK Communications Co.

starr@ink-co.com

512-228-2842

John Christiansen / Jenny Gore

Sard Verbinnen & Co

JChristiansen@sardverb.com / JGore@sardverb.com

415-618-8750 / 312-895-4700

About Rackspace Technology

Rackspace Technology® (NASDAQ: RXT) is the operator of the full enterprise AI stack from governed private cloud to AI inference and agents in production. With an Outcomes-as-a-Service model built on secure infrastructure, data foundations, and forward-deployed engineering, Rackspace delivers business results for regulated and mission-critical industries where governance, sovereignty, and uptime are non-negotiable. Learn more at www.rackspace.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events and can be identified by terminology such as “believe,” “may,” “will,” “potentially,” “estimate,” “continues,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect,” “is putting,” “designed to,” or the negative of such terms or other similar expressions, although not all forward-looking statements contain these words.

 These statements include, but are not limited to, Rackspace Technology’s relationship with NVIDIA and the NVIDIA Cloud Partner Program, its Enterprise AI Cloud strategy, the anticipated capabilities, benefits and timing of its Institutional Sovereign Pod architecture, Rackspace’s outlook on the AI industry and its ability to deliver, operate, and scale AI infrastructure and solutions for regulated, institutional and sovereign enterprises. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including, without limitation: Rackspace's ability to realize the anticipated benefits of its relationship with NVIDIA and the NCP program; the availability, cost, and timing of deployment of NVIDIA and other third-party technology; Rackspace's ability to develop, market, and scale the Institutional Sovereign Pod and related offerings on the anticipated timeline or at all; market acceptance of and demand for sovereign and governed AI infrastructure solutions; competition in the AI infrastructure and cloud services markets; capital expenditure requirements associated with AI infrastructure buildout; availability of financing for the AI infrastructure buildout on terms acceptable to Rackspace; Rackspace’s reliance on a limited number of technology partners, including NVIDIA; cybersecurity, data privacy, and regulatory compliance risks associated with serving regulated and sovereign customers; general economic and industry conditions; and other risks and uncertainties described in Rackspace's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Rackspace undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.