Chatter about the potential investment surfaces only a couple of weeks after Rackspace held an underwhelming IPO (initial public offering).
Rackspace, backed by private equity firm Apollo Global Management, is a very successful multi-cloud MSP focused on AWS, Microsoft Azure, Google Cloud Platform and more. The ranks among the world's Top 200 Public Cloud MSPs, according to ChannelE2E research. But investors appeared underwhelmed by Rackspace's debt load and dependence on third-party clouds to generate recurring managed services revenues.
A potential Amazon investment would involve a minority stake in Rackspace, Reuters says. There is no certainty a deal will actually surface, the reported added.
Meanwhile, M&A and investment activity in and around the MSP software market appears ready to heat up. Multiple private equity firms are considering potential MSP software deals head of the U.S. presidential election, ChannelE2E reports.