Rackspace to Improve Cloud-Based Email Services by Acquiring Mailgun Inc.

This Tuesday (on August 28, 2012), Rackspace Hosting, one of the leading providers of open cloud solutions, announced that it had entered into a definitive agreement to acquire Mailgun Inc., and thus improving its cloud portfolio further by making it both easy and quick to integrate cloud-based email services into websites and applications.

The Mailgun is a Y Combinator startup that provides extremely powerful set of APIs for users to manage email from their applications without the need to host an email server. Mailgun allows send, receive and tracking of emails from the user applications and also optimizes the email capability of those applications while also providing various reports and analytics. With its integrations in platforms like Heroku, AppFog and Engine Yard, Mailgun solutions are already used by many Companies including Financial Times and 37 Signals. With its growth rate of almost 20 percent month-on-month, acquiring Mailgun made business sense for Rackspace Hosting.

At its end, Rackspace Hosting also mentioned that its customers were demanding better mail services with the cloud solutions and by integrating Mailgun solutions, it will be able to enhance its cloud portfolio further. The Company also mentioned that the acquisition is expected to be closed by end of this week.

Written by Rushin

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