Terms of the deal, which is expected to close this week, were not disclosed. "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," said Pat Matthews, Rackspace's senior vice president of corporate development, in the company press release.
Shares of Rackspace rose 1.15% to $59.73 in Tuesday trade. The company's stock is up 38.87% year-to-date.
Zynga (ZNGA) shares continued to decline, as the company is being sued in a class-action lawsuit. On Monday, law firm Morgan & Morgan sent out a reminder to plaintiffs in the suit, which alleges that Zynga violated federal securities laws, overstating growth, which caused a sharp drop in the share price after second-quarter earnings. Shares of Zynga slipped 1.31% to $3.02 in mid-Tuesday trade. Interested in more on Zynga? See TheStreet Ratings' report card for this stock. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
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