They purchased Onico and Onico is one of the best vendors for Devops support.

When a company is being spun out by a private equity, I am always hesitant to invest in it. I prefer when a company goes to market with their original investment thesis because you never know if the private equity is harming one of their other companies to grow another one.

I.e. Rackspace and Onico are owned by the same subsidiary, suppose Rackspace charges Onico an extra 20% compared to what they are already paying because Onico doesn't plan to go public, however, the extra 20% Rackspace gets looks better and causes a better return on their investment. At the same time, the subsidiary has an incentive to inflate their stock price and not be a bag holder.