I think this is a smash-and-grab deal. They'll write down RAX's assets, then sell them while calling the difference between their sales price and the written down value "profits." They'll dish themselves out a dividend from the sales, maybe issue some more debt to buy additional infrastructure, then IPO it knowing that blackrock and fidelity and pension funds only look at earnings when they value companies (which they manufactured with their accounting gimmick), and flip the remaining shell of a company on to them for a hefty return.
What's left will collapse under the debt load that Apollo stuck it with.
That is dark and I like it. Seems to be what everyone is doing these days, just manipulating the books to make things look good before offloading to the next sucker.
That's a prediction, I believe, that Apollo will run Rackspace into the ground or perhaps just accelerate their demise in the confrontation with the big three competitors.