Rackspace, based out of San Antonio, has been sold for a whopping $4.3 billion.

By the end of the year, Rackspace will no longer be a publicly traded company but privately owned by Apollo Global Management.

"They are not a technology company acquiring another technology company. They are a financial company that is in the business of building and helping companies grow," said John Engates, chief technology officer at Rackspace.

Grow is exactly what Rackspace has done since its founding in 1998. Just 10 years later in 2008, Rackspace began publicly trading on the New York Stock Exchange. It now serves business customers in more than 120 countries on four continents.

Rackspace addresses employees in San Antonio after the company was sold for $4.3 billion. Photo by Rackspace
Rackspace addresses employees in San Antonio after the company was sold for $4.3 billion. Photo by Rackspace

But the sale doesn't mean the company is leaving the Alamo City.

"The company stays put. It stays in San Antonio,” Engates said. “The leadership team that is in place today is continuing to stay in place. The ‘Rackers’ that are in San Antonio will get to stay in San Antonio, which is a good thing."

Commissioners Court praised the sale saying:

"The local tech ecosystem owes a lot of its success to the presence of Rackspace, and it is that very strength of the industry that will allow Rackspace to expand [in San Antonio]."

"Oftentimes when you are a public company, you are under the microscope of many investors,” Engates said. “If you are a private company, a lot of that is not a thing. You don't have to think about it. You just sort of execute and do."

Rackspace says that the deal is expected to close in the fourth quarter of 2016.