Apollo Global Management LLC (NYSE: APO) agreed to buy cloud-services company Rackspace Hosting Inc. (NYSE: RAX) for $4.3 billion.

The New York-based private equity firm will buy San Antonio-based Rackspace for $32 a share in an all-cash transaction, according to a statement. As part of the deal, funds managed by Searchlight Capital Partners will make an equity investment in the acquired company.

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