Rackspace has signed an official agreement to acquire TriCore Solutions, an enterprise app management company.

Companies currently spend approximately $3 billion a year on Enterprise Resource Planning (ERP), business intelligence and analytics and database managed services, according to industry analysts. Which is why Rackspace is keen to enhance its portfolio in this space.

The acquisition of TriCore will enable Rackspace to deliver support for the mission-critical enterprise applications used by companies in the management of core functions such as manufacturing, logistics, procurement, supply chain management, customer service, HR and financial operations.

TriCore distributes its infrastructure services in any location requested by the customer. This may be such as the customer’s data centre, TriCore data centre, a colocation facility, or a data centre run by a hyperscale cloud provider such as AWS or Microsoft Azure.

It currently serves around 275 managed service customers across various industries, which streams rapid growth and profitability in its revenue.

Read more: Rackspace adds Google Cloud Platform to its managed services portfolio

 

Jeff Cotton, President and interim CEO, Rackspace said: “Our customers are asking us to move further ‘up the stack’ by expanding our managed application capabilities.

“TriCore’s services are among the best in that space and are highly complementary to ours. They will help enable us to deliver more of the services that our existing customers need, while opening the door to new opportunities across the globe.”

Rackspace enterprise and midmarket customers which have requested the company to expand its offerings will benefit from the application management capabilities that TriCore offers widely across ERP, business intelligence and analytics, and data warehousing and integration.

TriCore has since its launch in 1999, developed a culture of high-end customer service, similar to that of Rackspace.

The CEO, Mark Clayman and other key members of the management team also have experience in application managed services and will join Rackspace following the acquisition.

Although the cost of acquisition is yet to be disclosed, this will be the largest acquisition made in Rackspace’s history. The deal is expected to close in June 2017.