RelationEdge is a digital agency that uses the popular Salesforce platform to help businesses add and retain customers.
According to its website, the company has been around for five years and it lists staff in 14 locations, including Dallas, Houston and Austin.
The San Diego-based company has 125 employees, making it the third largest purchase in company history. Late last year, Rackspace purchased DataPipe, which was the biggest purchase it had ever made.
RelationEdge will not relocate to San Antonio, and according to sources familiar with the deal all of its employees will stay on.
This is the first software as a service company that Rackspace has purchased. SaaS companies sell subscriptions to their software. Executive Vice President Gerrard Brossard was quoted in the post saying that the move comes in response to growing demand from customers.
The past 18 months at the tech company have seen layoffs of more than 300 people, while adding other staff and several new executives, including the hiring of CEO Joe Eazor, and the purchase of three companies.