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Rackspace Acquires RelationEdge to Broaden Application Services Portfolio for Customers

Rackspace announced it has acquired RelationEdge, a full-service Salesforce Platinum Consulting Partner and digital agency that helps clients engage with their customers from lead to loyalty by improving business process, leveraging technology, and integrating creative digital marketing.

Software-as-a-service (SaaS) applications like Salesforce are a growing component of many companies’ digital transformation journey. With this acquisition, Rackspace expands its ability to be a preferred partner for managing a customer’s complete application portfolio through continuous transition to modern technologies, including SaaS applications. Rackspace has built one of the industry’s broadest portfolios of IT services and expertise across applications, data, security, and infrastructure.

“We have acquired RelationEdge in response to the growing demand we’re hearing from customers,” said Gerard Brossard, EVP and general manager of Rackspace Application Services. “Enterprise and midmarket companies are increasingly deploying SaaS applications to enhance business processes across many departments, from sales and marketing to customer service, operations, HR, and finance. These applications are powerful, but also complex to implement and costly to continually keep up-to-date. RelationEdge further extends Rackspace’s unrivaled portfolio and expertise to help companies navigate and operate in the world of ever-changing IT.”

“The line between managed services and professional services is blurring. Enterprise customers want a trusted advisor who can help them navigate their end-to-end digital transformation journey as they adopt next-generation SaaS environments,” said Michelle Bailey, Group Vice President, General Manager and Research Fellow, IDC. “Rackspace’s acquisition of RelationEdge addresses this enterprise customer need and fits the evolving company strategy to be a leading IT services provider.”

Based in San Diego, CA where it was founded in 2013, RelationEdge has since opened offices in a dozen cities across the U.S. It is a growing and profitable business with 125 employees. Rackspace intends to operate the business with considerable independence under its current leadership and the RelationEdge brand, which is well known and respected among Salesforce’s leaders and customers.

“We are very proud of what we’ve built,” said Matt Stoyka, RelationEdge founder and CEO. “We’re also excited about what we still can achieve in this fast-growing market by joining forces with Rackspace. The two companies are a great fit culturally as both differentiate themselves through exceptional customer service. RelationEdge’s Process First, Technology Second approach perfectly complements Rackspace’s approach to provide unbiased expertise across all leading technologies and to deliver the best-fit solution for each customer’s unique needs.”

“We are happy to see Rackspace and RelationEdge come together,” said Kori O'Brien, Senior Vice President, North America Alliances & Channels at Salesforce. “RelationEdge has been a valuable partner in the Salesforce ecosystem. The combination of RelationEdge’s unique process-first approach to solving business problems, and Rackspace’s transformation and technology expertise, will allow both companies to provide greater service and solutions to fuel customer success.”

Both companies are privately held, with Rackspace owned by affiliates of certain funds of Apollo Global Management, LLC and certain co-investors. RelationEdge was owned by its founders, its regional market leaders, and Tide Rock Ventures. Financial details are not being disclosed.

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