The “Gut Wrenching” Setbacks Before Webmail.us Triumphed And Sold To Rackspace

Hmm. Pat says that their run rate was $8MM at the time of the merger. They were acquired for 941,000 shares (plus a few hundred thousand dollars). Rackspace went public at about $12.50/share so this was about $12MM.

Ten million bucks for $8m in annual subscription revenue is ridiculously cheap. Either I'm misisng something significant here, or they got ripped off.

Source: Rackspace S1A filing