According to a recent press release by search engine giant, Google, the company will be acquiring cloud software company Apigee. The deal has been valued at $625 million and highlights Google’s efforts of grabbing the cloud business.
Apigee, a software company based out of San Jose, helps companies in offering digital services that interact with the applications being used by the consumers. These services are crucial for any company or business transitioning to the cloud. Diane Greene, who currently heads Google’s Cloud Computing Division, stated in an interview that Apigee are the leaders in the application programming interface area.
Cloud computing has recently gained traction as enterprises find it easier to store, manage and process their information in remote internet servers. In this area, Apigee offers its expertise in managing the application programming interfaces (APIs). APIs can be roughly defined as channels through which digital services connect when a company desires to log in the purchase of their customer or an order with their supplier.
In order to seal the deal, Google will be paying Apigee shareholders $17.40 per share which is a 6.5% premium to the stock’s Wednesday close. In the consumer list, Apigee offers its services to some massive enterprises including AT&T, Vodafone, and the World Bank.
Greene has sought to raise Google’s stature in the corporate computing department ever since she joined the company last year. During her tenure, the company has streamlined their engineering efforts and appointed new leadership for their cloud computing department. Greene has predicted that the acquisition would redouble Google’s momentum.
This deal comes a day after Google partnered with Box Inc. The Google-Box partnership would enable the corporate consumers of Box to use Google’s plethora of tools that fall under Google Docs.
In the fast-paced technological world, Google, Amazon, IBM, and Microsoft are all aiming to score a chunk of the corporate cloud computing business. Analysts have predicted that the deal would benefit Google greatly as Apigee has high-profile clients in important locations. Google has been struggling in the cloud computing market against Microsoft’s Azure and Amazon’s Web Services; however, with this acquisition, it seems that Google might finally catch-up with the competition.