Filing fuels Rackspace sale talk.

Document outlines compensation plans for top executives in event of ownership change

Shares of Rackspace Technology surged Friday after a regulatory filing touched off speculation that the San Antonio cloudcomputing company could be an acquisition target.

Rackspace’s Thursday filing with the Securities and Exchange Commission outlined compensation plans for its top executives in the event of an ownership change.

The plan covers CEO Kevin Jones and other designated employees in the event of a “termination following a change in control.” It outlines severance payments, bonuses, health insurance, outplacement services and tax reimbursements.

A Rackspace spokesperson declined to comment on the SEC filing or market speculation.

In 2016, New York-based Apollo Global Management, one of the world’s largest private equity firms, took Rackspace over in a $4.3 billion deal that removed the company from the stock market.

Apollo kept the company private until it orchestrated an initial public offering on the NASDAQ Global Select Market in August.

With more than 20 million shares trading hands, Rackspace stock ended Friday at $24.13, up 7 percent from Thursday.

Since its IPO, its shares have closed as low as $15.25 and as high as $25.76.

In August, shortly after Rackspace returned to the stock market, a Reuters report cited unnamed sources who said Amazon Web Services was potentially seeking a stake in the company. Despite the buzz, both firms have been silent on that possibility since then.

Thursday’s filing follows a period of transition for the company.

In November, Amar Maletira became the company’s new chief financial officer, and in January,

Rackspace announced the refinancing of $2.9 billion in debt.

Rackspace finished 2020 with revenue up 11 percent, to $2.7 billion from $2.4 billion in 2019.

In the fourth quarter, however, the company posted a loss of $64 million, up 14 percent from the same period the year before.