Rackspace to Acquire Mailgun for Easy Integration of Cloud-Based Email Services Into Applications & Websites

San Antonio, TX - August 28, 2012 - Today, Rackspace® Hosting (NYSE: RAX), the open cloud company, announced that it has entered into a definitive agreement to acquire Mailgun, Inc., a Y Combinator startup.  On the heels of the Rackspace Open Cloud launch, the Mailgun acquisition will further enhance Rackspace's product portfolio, making it easy to integrate cloud-based email services into applications and websites within minutes. The acquisition is expected to close this week.

"Rackspace is dedicated to providing the tools that our customers need to build their technology stack on the Rackspace Open Cloud," said Pat Matthews, senior vice president of corporate development at Rackspace.  "Mail is a core component of nearly every website and application today.  Our customers are asking for this and Mailgun is the right company to help us deliver it in a tightly integrated way."

Built for developers, Mailgun provides a powerful set of APIs that allows users to send, receive, and track email easily from within their applications – without managing an email server or becoming an expert in email setup, operations and deliverability.  This full-featured email service allows customers to engage their users, and optimize the email capability of their application and websites with all the analytics and data needed to measure the impact.  The company is currently servicing customers such as 37Signals, Parse, Financial Times and many others. Growing by over 20 percent a month, Mailgun is also integrated into platforms such as Heroku, AppFog and Engine Yard.

"Mailgun is excited to join the Rackspace family.  We believe in their open cloud strategy and we love the customer support mentality that permeates the company," said Ev Kontsevoy, CEO and founder of Mailgun.  "Like Rackspace, we want to provide developers with the right products to make the lives of developers easier and more productive.  We look forward to continuing this mission with Rackspace and building a strong future together."

Part of the Y Combinator winter 2011 graduating class, Mailgun is headquartered in San Francisco.  The Mailgun team will remain in San Francisco which will add talented entrepreneurs and engineers to the growing presence Rackspace already has in San Francisco.

"Today, email integration into web apps is as important as your website presence itself because it provides the bridge for companies to talk with their customers or the community to talk to each other," said Paul Buchheit, a partner at Y Combinator, the lead developer who created Gmail and a founder of FriendFeed.  "I am excited for Mailgun to join Rackspace and to be able to provide this to more developers worldwide."