Cloud hoster Rackspace may go private and is currently talking with a private equity firm to help fund the deal.
Tech website TechCrunch, which reported the news, said that an announcement of the deal may come this week.
A source in Rackspace told TechCrunch: "The pressures of being a public company are too much."
Rackspace is a hosting services provider, which provides public cloud, private cloud and managed hosting.
Rackspace has just come out of a number of acquisition bids, with offers from companies such as IBM and HP. TechCrunch’s source claimed that the offer from IBM fell through – something that IBM has yet to confirm.
Rackspace has recently been touting its OpenStack open source platform that puts the firm in a better position to take on competitors such as Amazon. The open source solutions cover a range of IaaS products and enable a situation where fewer engineers and lesser costs are needed, allowing Rackspace to focus more of its budget on support.