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Jersey City-based cloud specialist, Datapipe acquired by Rackspace

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Datapipe, a Jersey City-based managed public cloud service provider, has been acquired by rival Rackspace, based in San Antonio.

Terms of the deal were not disclosed, although Rackspace said in a press release that the acquisition is the largest in its history.

Datapipe was named one of the state’s fastest growing companies in 2016, and has cloud infrastructure capabilities in New York, London, Hong Kong and Shanghai. Last year, Datapipe opened its first data center in Moscow to take advantage of the Russia’s burgeoning e-commerce market.

Rackspace, a cloud solutions provider to businesses, will gain significant market share with the acquisition, as it has made several moves over the past year to compete with the likes of multi-cloud solutions providers such as Microsoft and Amazon.com.

Last year, the company laid off 6 percent of its workforce shortly after engaging in $4.3 billion deal with private equity giant Apollo Global Management. In August 2016, Rackspace also launched its global solutions and services division to expand its core cloud business. The division provides its customers with assistance in moving their workloads to public and private clouds.

Datapipe has over 700 employees and $350 million in revenue, according to corporate data provider Owler. A spokesperson for Datapipe said the company does not expect layoffs as a result of the acquisition. Last year, it acquired U.K.-based cloud consulting firm Adapt to try to gain a foothold in the European market.

Among the new capabilities that Datapipe will bring to Rackspace, according to a press release, are access to public sector customers in the U.S. Departments of Defense, Energy and Treasury, as well as the U.K. Cabinet Office, Ministry of Justice, and Department of Transport and managed services on the Alibaba Cloud, the largest cloud management system in China.

“Our customers are looking for help as they spread their applications across public and private clouds, managed hosting, and colocation, depending on the blend of performance, agility, control, security and cost-efficiency they’re seeking,” Rackspace CEO Joe Eazor said in a prepared statement. “With the acquisition of Datapipe, we’re very pleased to expand the multi-cloud managed services we provide our customers, while also opening doors to new opportunities across the globe.”

“We are very proud of the business we have built and the innovations and successful customer outcomes we have been recognized for, and the future of Datapipe will be even brighter in combination with Rackspace,” Robb Allen, founder and CEO of Datapipe, said.

“Customers need guidance using public cloud infrastructure from Alibaba Cloud, Amazon Web Services, Google Cloud Platform and Microsoft Azure. They also need help navigating the use of private clouds, managed hosting and colocation solutions, often in combination, as they move critical applications out of their corporate data centers. The combination of complementary capabilities and resources from both of our companies will create the world’s leading provider of multi-cloud managed services.”

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Vince Calio

Vince Calio

Vince Calio covers health care and manufacturing for NJBIZ. You can contact him at vcalio@njbiz.com.

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