August 26, 2016 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Rackspace Hosting, Inc. (NYSE:RAX), was announced concerning whether the takeover of Rackspace Hosting, Inc. by funds managed by affiliates of Apollo Global Management, LLC for $32.00 per share is unfair to NYSE:RAX stockholders.

The investigation by a law firm concerns whether certain officers and directors of Rackspace Hosting, Inc. breached their fiduciary duties owed to NYSE:RAX investors in connection with the proposed acquisition.

On August 26, 2016, Rackspace Hosting, Inc. (NYSE:RAX) announced that it has entered into an agreement with affiliates of certain funds (the 'Apollo Funds') managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, 'Apollo') (NYSE: APO)to be acquired for$32.00 per share in cash.

However, given that at least one analyst has set the high target price for NYSE:RAX shares at $44.00 per share, the investigation concerns whether the offer is unfair to NYSE:RAX stockholders. More specifically, the investigation concerns whether the Rackspace Hosting Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

Rackspace Hosting, Inc. reported that its annual Total Revenue rose from over $15.3 billion in 013 to over $2 billion in 2015 and that its respective Net Income increased from $86.74 million to $126.20 million.