Google to buy software developer Apigee in $625 million deal

Google to buy software developer Apigee in $625 million deal

Google to buy software developer Apigee in $625 million deal

Google will acquire Apigee for $17.40 per share in cash, or about $625 million, according to VentureBeat.

It's stock is now up 6.49 percent, to $17.40 a share, just above its $17 IPO price.

Apigee went public in April a year ago at US$17 per share.

The deal, announced Thursday, gives Google access to tools that allow company back-end systems to communicate with mobile and web apps, Diane Greene, senior vice president of Google's cloud business, said in a blog post.

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The availability of published APIs means that a software developer can cobble together different mini-services already available-such as Google Maps meshed with Twilio (to add SMS messaging) along with other capabilities-to make something new and different.

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

Since Google hired Ms. Greene in November, it has been bolstering its pitch to companies to effectively store and run their digital businesses on Google servers with Google services.

Google said it will use the API management techniques to support its enterprise cloud customers using products such as Google App Engine and Google Container Engine. "Companies are moving beyond the traditional ways of communicating. like phone calls and visits. and instead are communicating programmatically through APIs". Walgreens uses Apigee to offer APIs and analyze how the tools are being used.

Google has been working on bulking up its enterprise-focused products, having lagged behind Inc. and Microsoft selling its public cloud computing software to companies. Greene joined Mountain View past year to broaden the company's tool set to appeal to less technically savvy customers.

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

"They're looking for assets to build out their cloud business", said James Cordwell, an analyst at Atlantic Equities.

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