Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
The deal is valued at $600 million.
Sycamore Partners, a New-York based investment firm, last week announced that it had completed its acquisition of Hot Topic Inc. The merger, which Sycamore announced in March, includes the Hot Topic, Torrid and Blackheart brands, and is valued at approximately $600 million.
Hot Topic Inc., No. 237 in the Internet Retailer Top 500 Guide, is a trendy shopping mall and web-based retailer of teenage apparel and accessories. The retailer generated Internet Retailer-estimated web sales of $76 million in 2012.
“We are very happy to partner with Sycamore Partners,” says Lisa Harper, chief executive officer and chairman of the board of Hot Topic, said. “Their knowledge and expertise in the consumer and retail markets is precisely what we need to optimize both the Hot Topic and Torrid brands.”
The acquisition of Hot Topic marks the fourth retail investment for Sycamore Partners, including the firm’s 2012 acquisition of women’s specialty retailer Talbots Inc., No. 146 in the Internet Retailer Top 500 Guide.
“Hot Topic and Torrid are both leaders in their categories, and we are excited to have both brands as part of our portfolio,” says Sycamore Partners managing director Stefan Kaluzny.