Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
A filing shows the daily deal operator is 44% of the way toward that goal.
LivingSocial hopes to raise $400 million in a new funding round that is expected to close by the end of the first quarter of 2012, according to a filing today with the U.S. Securities and Exchange Commission.
The filing notes that the daily deal operator is already $176 million toward that total, thanks to funding from old and new investors including Code Advisors LLC and J.P. Morgan Securities LLC.
The move comes a little more than a month after Groupon Inc. raised nearly $700 million from its initial public offering of stock.
LivingSocial could not be reached for immediate comment on its plans for the proceeds. The funds are for operations and continued expansion, according to sources with knowledge of LivingSocial's strategy. None of the funds will be used to pay out current investors.
Earlier this year, the daily-deal operator raised nearly $400 million. Last year, Amazon.com Inc. invested $175 million in LivingSocial.
LivingSocial says it has more than 46 million members spread across 25 countries.