Google to buy software developer Apigee in $625 million deal

by Lawrence Cooper September 9, 2016, 2:37
Google to buy software developer Apigee in $625 million deal

APIs have become an integral part of cloud software development, allowing one application to pull data and use services from multiple other programs.

Google's announcement regarding the acquisition notes Forrester's prediction that USA companies will have spent near to $3 billion on API management by the end of this decade.

Shares of Alphabet (GOOGL) are down $4.44, or half a percent, at $803.56, after Apigee (APIC), the San Jose, California-based software developer, announced this morning it is being bought by Google for $17.40 per share, or $625 million. It's certainly interesting timing, given that Dell closed the massive EMC deal yesterday, and among its booty from that deal is Pivotal, a company that also helps organizations in their digital transformation.

Walgreens, for example, uses Apigee to manage the APIs that enable its partners and developers to build apps. Apigee's speciality is managing APIs through which digital services connect when a company logs a purchase or an order is placed by a customer or with a supplier.

"APIs - the mechanism developers use to interface and integrate with outside apps and services - are vital for how business gets done today in the fast-growing digital and mobile marketplace".

"It is stunning how nearly every customer is bringing up (APIs) when I'm in meetings", said Diane Greene, head of Google's enterprise-cloud business, in an interview Thursday. Google expects the addition of Apigee to Google cloud will step up customers' efforts to support their businesses with mobile applications.

Greene predicted that the Apigee acquisition would redouble Google's momentum.

"Apigee is proud to be a leader in APIs". "We have a solid track record of working hand in hand with some of the largest and most demanding brands in the world to solve new problems and create new products", he said.

Tech Crunch notes that Google certainly sees the value of including an API management tool to its arsenal. It will "continue to operate indendently", until the transaction closes.

Apigee was valued at $600 million in the summer of 2014, when it last raised money from private investors.

TOP News

Greta Van Susteren out as Fox News host

Storms Possible For Remainder Of Week

Drake's Dad: 'My son and Rihanna are just friends'

Ash Carter: Russia sowing seeds of global instability

Fighting displaces 100000 in central Syria in 8 days

NASA's 1st asteroid-sampler poised for evening liftoff

Australian Lawmaker Quits After China Company Paid Travel Bill

Reliance Jio Offers; Reliance Jio Now Available For All 4G Smartphones

Hewlett-Packard Enterprise To Spin Off Assets in $8.8B Deal

Wells Fargo Fined $185 Million Over Creation Of Fake Accounts For Bonuses