Throughout August, rumors have circulated that Rackspace Hosting Inc. might be acquired by a private equity firm. Friday, the deal emerged.

Rackspace, a San Antonio-based cloud-services company with offices in Austin, announced it has agreed to be acquired by New York-based Apollo Global Management LLC for $4.3 billion. The company, which traded as $RAX, will now become a private company. Rackspace stockholders will get $32 per share in cash.

The deal is expected to close in the fourth quarter.

“We are also excited that this transaction will provide Rackspace with more flexibility to manage the business for long-term growth and enhance our product offerings,” Graham Weston, co-founder and chairman of the board of Rackspace, said in a news release. “We are confident that as a private company, Rackspace will be best positioned to capitalize on our early leadership of the fast-growing managed cloud services industry.”

Rackspace has between 500 and 1,000 employees in Austin, according to the Austin Chamber of Commerce.

The cloud management company has flirted with acquisitions in the past as it has struggled to compete with cloud offerings from Microsoft and Amazon. In 2014, the company hired Morgan Stanley to look into acquisition opportunities, but nothing came of it.

Going private is likely to take some of the pressure off of Rackspace, a dynamic Michael Dell emphasized in the years since he and Silver Lake Partners took the company private in 2013.

(Image via Flickr by Garrett Heath. CC by 2.0)